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

Show Suggested Answer

Suggested Answer: D

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

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Bulah

1 days 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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Iluminada

7 days 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

14 days ago

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

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Cammy

14 days 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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Roy

2 days ago

I agree, it's important to account for inflation when valuing assets.

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Louann

19 days ago

I agree with Cristal. It makes sense to adjust the historical cost for inflation.

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Cristal

22 days ago

I think the answer is A) Price-level adjusted historical cost.

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