ACFE CFE Exam - Topic 2 Question 32 Discussion

Actual exam question for ACFE's CFE exam

Question #: 32
Topic #: 2

[All CFE Questions]

_________ assumes the business will go on indefinitely in the future.

AMateriality

BGoing concern

CCost

DFair value

Show Suggested Answer

Suggested Answer: D

by Cristy at Feb 27, 2023, 07:39 PM

Limited Time Offer

25%

Off

Get Premium CFE Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Ula

7 months ago

I thought cost was more important in this context.

upvoted 0 times

...

Lizette

7 months ago

B is correct, but I think materiality plays a role too.

upvoted 0 times

...

Johanna

7 months ago

Wait, is it really that straightforward?

upvoted 0 times

...

Graciela

8 months ago

Agreed! Without that assumption, everything falls apart.

upvoted 0 times

...

Derrick

8 months ago

Definitely B, going concern is key for financial statements.

upvoted 0 times

...

Lorean

8 months ago

I’m confused between going concern and fair value. I need to remember what each term specifically means in context.

upvoted 0 times

...

Roy

8 months ago

I practiced a similar question last week, and it was definitely about going concern. So I’m leaning towards B as well.

upvoted 0 times

...

Mirta

8 months ago

I'm not entirely sure, but I feel like it could also be related to materiality. I need to double-check that.

upvoted 0 times

...

Lili

8 months ago

I think the answer is B, Going concern. I remember it being about the assumption that a business will continue operating.

upvoted 0 times

...

Laura

8 months ago

This looks like a straightforward question about organizing and cleaning up categories in a Nutanix environment. I think I can handle this one.

upvoted 0 times

...

Sharmaine

8 months ago

Alright, time to put my knowledge to the test. I'll carefully consider each option and make sure I select the three that are specifically related to adding agents in ACCS.

upvoted 0 times

...

Meaghan

8 months ago

I'm a bit confused by the wording of this question. Can someone clarify what exactly is meant by "clustering" Expressways? That might help me figure this out.

upvoted 0 times

...

Broderick

1 year ago

Going concern? More like 'going, going, gone' if you ask me! But hey, at least we can dream, right?

upvoted 0 times

Alaine

1 year ago

D) Fair value

upvoted 0 times

...

Kenda

1 year ago

C) Cost

upvoted 0 times

...

Rosendo

1 year ago

B) Going concern

upvoted 0 times

...

Helene

1 year ago

A) Materiality

upvoted 0 times

...

Taryn

1 year ago

B) Going concern. Isn't that the one where we pretend the business will keep running forever, no matter what? Sounds like a great strategy to me!

upvoted 0 times

...

Lawrence

1 year ago

B) Going concern. Anything else would be like trying to predict the future - good luck with that, am I right? I'd rather just assume everything's going to be peachy.

upvoted 0 times

Enola

12 months ago

D) Fair value

upvoted 0 times

...

Francine

12 months ago

C) Cost

upvoted 0 times

...

Cordie

12 months ago

B) Going concern

upvoted 0 times

...

Maryann

12 months ago

A) Materiality

upvoted 0 times

...

Dahlia

12 months ago

B) Going concern. Anything else would be like trying to predict the future - good luck with that, am I right? I'd rather just assume everything's going to be peachy.

upvoted 0 times

...

Murray

1 year ago

D) Fair value

upvoted 0 times

...

Edmond

1 year ago

C) Cost

upvoted 0 times

...

Daniel

1 year ago

B) Going concern

upvoted 0 times

...

Carey

1 year ago

A) Materiality

upvoted 0 times

...

Sharan

1 year ago

Hmm, I'd have to say B) Going concern. Isn't that the one where we assume the business will keep chugging along like the Energizer Bunny? I hope my boss feels the same way!

upvoted 0 times

Kristian

12 months ago

I hope my boss believes in the going concern assumption too, it's crucial for the business's success.

upvoted 0 times

...

Nohemi

12 months ago

That's correct! Going concern is an important concept in accounting to consider the future of the business.

upvoted 0 times

...

Shawn

1 year ago

I agree, it's like assuming the business will keep going and going, just like the Energizer Bunny.

upvoted 0 times

...

Alexia

1 year ago

Yes, you're right! Going concern is the assumption that the business will continue operating in the future.

upvoted 0 times

...

Ashlyn

1 year ago

Going concern is definitely a key concept in accounting to ensure the business can sustain its operations in the long run.

upvoted 0 times

...

Ciara

1 year ago

I think it's crucial for businesses to assess their ability to continue operating before making any financial decisions.

upvoted 0 times

...

Ernestine

1 year ago

I agree, it's important to consider the going concern assumption when evaluating a company's financial statements.

upvoted 0 times

...

Dahlia

1 year ago

Yes, you're right! Going concern is all about assuming the business will continue operating in the future.

upvoted 0 times

...

Joni

1 year ago

But what about materiality? Doesn't that also play a role in financial reporting?

upvoted 0 times

...

Olive

1 year ago

I agree with Lisbeth, businesses are expected to continue operating in the future.

upvoted 0 times

...

Gilberto

1 year ago

Going concern, of course! That's the foundation of our financial reporting, right? Anything else would be like building a house on quicksand.

upvoted 0 times

Whitley

1 year ago

Agreed, it's like the backbone of financial reporting.

upvoted 0 times

...

Francoise

1 year ago

Without the going concern assumption, financial statements would not reflect the true picture of the business.

upvoted 0 times

...

Jaime

1 year ago

It's definitely important to assume the business will continue operating in the future.

upvoted 0 times

...

Leslie

1 year ago

Yes, going concern is crucial for accurate financial reporting.

upvoted 0 times

...

Lisbeth

1 year ago

I think the answer is B) Going concern.

upvoted 0 times

...