ACFE Exam CFE-Financial-Transactions-and-Fraud-Schemes Topic 5 Question 76 Discussion

Actual exam question for ACFE's CFE-Financial-Transactions-and-Fraud-Schemes exam

Question #: 76
Topic #: 5

[All CFE-Financial-Transactions-and-Fraud-Schemes Questions]

Asset misappropriations have an effect on the liabilities and do also have an indirect effect on the equity account.

ATrue

BFalse

Show Suggested Answer

Suggested Answer: B

by Cory at Oct 22, 2023, 09:15 PM

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Lavonda

1 months ago

Wait, isn't asset misappropriation just when someone steals the company's assets? How does that have any impact on liabilities or equity? This question is making my head spin!

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Moira

1 months ago

Well, if asset misappropriations affect the liabilities and equity, that would mean the entire accounting equation is out of balance. That doesn't seem right to me.

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Nelida

9 days ago

B) False

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Noah

15 days ago

A) True

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Sharika

1 months ago

Haha, trick question! Asset misappropriations are all about the assets, not the liabilities or equity. Nice try, exam writer!

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Roselle

1 months ago

Hmm, I'm not so sure about that. Aren't asset misappropriations more focused on the asset side of the equation? I'll have to double-check my notes on this one.

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