Discuss ACFE CFE Exam Topic 1 Question 78

The seller's price to the buyer is not fixed or determinable when:

AWhen the price is not contingent on some future events

BThe transaction includes an option to exchange the product for others.

CA service or membership fee is not subject predictable cancellation during the contract period.

DPayment terms are not extended for a substantial period.

Suggested Answer: B

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13 comments · newest first

Karima 10 months ago

Yeah, I see why B is the right choice here!

Coletta 10 months ago

A is wrong; price can be fixed without future events.

Ryan 11 months ago

Wait, are we sure about C? Seems a bit off to me.

Arlene 11 months ago

Totally agree with B! Makes sense.

Bobbie 11 months ago

I think it's definitely B. Options can complicate pricing.

Abel 11 months ago

I practiced a question similar to this, and I think it was about cancellation fees affecting the price, but I’m confused about the details.

Bettina 12 months ago

I feel like the answer could be related to payment terms, but I can't recall the specifics about what makes them substantial.

Delsie 12 months ago

I remember something about options to exchange products affecting pricing, so maybe that's the right choice here?

Verlene 12 months ago

I think the price might not be fixed if it depends on future events, but I'm not entirely sure which option that relates to.

Natalya 1 year ago

Ah, this is a tricky one. I'll need to be careful to distinguish between the different scenarios described in the answer choices and make sure I understand the underlying concepts.

Tegan 1 year ago

Okay, I think I've got this. The key is to identify situations where there's uncertainty around the final selling price, like if it's contingent on future events or the customer has options to exchange the product.

Chaya 1 year ago

Hmm, I'm a bit unsure about this one. I'll need to review the revenue recognition principles to make sure I understand the nuances of when the price is not fixed or determinable.

Ronny 1 year ago

This seems like a straightforward question about revenue recognition. I'll need to think through the key criteria for when the seller's price is not fixed or determinable.

ACFE CFE Exam - Topic 1 Question 78 Discussion