ACFE CFE-Law Exam - Topic 2 Question 63 Discussion

Actual exam question for ACFE's CFE-Law exam

Question #: 63
Topic #: 2

Which of the following is a method of disguising money acquired from illegal sources by recording more income on a business's books than the business actually generates?

AOverstating revenues

BReporting real estate purchases

CRecording but not depositing revenue

DNone of the above

Show Suggested Answer

Suggested Answer: A

by Raylene at Jul 09, 2025, 11:54 PM

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Vallie

2 months ago

Not sure if I buy that, seems too obvious.

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Myra

3 months ago

A is the most common method, no doubt about it.

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Marsha

3 months ago

Definitely A, overstating revenues is classic.

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Ashton

3 months ago

Wait, is this really how people do it? Sounds sketchy!

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Carissa

3 months ago

I disagree, C could also fit that description.

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Nikita

3 months ago

I recall a practice question that was similar, and it focused on how businesses manipulate their books. A seems to be the right choice, but I’m still a bit unsure.

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Tu

4 months ago

I feel like overstating revenues is definitely the most straightforward method. It seems to fit the question best.

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Merissa

4 months ago

I'm not entirely sure, but I remember something about recording but not depositing revenue being a tactic too. Maybe it's C?

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Yaeko

4 months ago

I think the answer might be A, overstating revenues. We talked about that in class as a common method for money laundering.

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Toshia

4 months ago

Okay, I think I've got it. The key is that the question is asking about a method of disguising illegal income, so A seems like the best answer.

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Vincent

5 months ago

I'm a bit confused by the wording of the question. I'll have to re-read it a few times to make sure I understand.

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Sang

5 months ago

Overstating revenues sounds like the most likely method of disguising illegal income. I'll go with A.

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Dannette

5 months ago

Hmm, I'm not sure about this one. I'll have to think it through carefully before answering.

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Brock

5 months ago

This question seems straightforward - I think the answer is A, overstating revenues.

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Boris

7 months ago

C) Recording but not depositing rBorisnue is also a method used to hide illegal money, as it creates a paper trail without actually depositing the funds.

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