ACFE Exam CFE-Financial-Transactions-and-Fraud-Schemes Topic 8 Question 77 Discussion

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

Question #: 77
Topic #: 8

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

The _______________ cost method of pricing would carry an asset's value on the financial statements as what it would currently cost, considering inflation.

APrice-level adjusted historical cost

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Suggested Answer: D

by Chantell at Nov 25, 2023, 11:29 AM

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Cassandra

1 months ago

Price-level adjusted historical cost? Sounds like something my grandpa would talk about when he was reminiscing about the good old days when a dollar could actually buy you something.

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Ettie

2 days ago

It's like adjusting the historical cost to match today's prices, pretty interesting concept.

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Erick

9 days ago

Yeah, it's a method of pricing that takes into account inflation so that the asset's value reflects current costs.

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Deonna

2 months ago

Price-level adjusted historical cost? Isn't that just an accountant's way of saying 'we're keeping up with the rising prices'? I wonder if they adjust the coffee budget in the break room too.

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Annice

15 days ago

It's a way to make sure the financial statements reflect the current value of assets in an inflationary environment.

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Terrilyn

18 days ago

I think they only adjust the coffee budget if inflation affects the price of coffee beans.

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Annice

19 days ago

Yes, that's right. It helps to show the true value of assets over time.

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Bulah

2 months ago

Ah, the old 'inflation adjustment' trick. It's like the financial statements are keeping up with the times, even if the rest of us are struggling to keep up.

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Lai

10 days ago

Absolutely, it's important to consider inflation when valuing assets to get a clear picture of the company's financial position.

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Skye

13 days ago

It's definitely a more accurate way to reflect the true value of assets over time.

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Estrella

19 days ago

Yeah, that's why using the price-level adjusted historical cost method can help account for those changes.

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Wilford

21 days ago

I know, it's crazy how inflation can really impact the value of assets on the financial statements.

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Iluminada

2 months ago

Price-level adjusted historical cost? Sounds like something that would make my head spin. As long as it keeps the bean-counters happy, I'm all for it.

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Devora

2 months ago

I'm not sure about this. Wouldn't it be better to use the actual current cost instead?

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Cammy

2 months ago

The price-level adjusted historical cost method sounds like a fancy way to say 'inflation adjustment'. I guess the accountants want to make sure our assets aren't undervalued on the books.

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