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

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Ula

10 months ago

I thought cost was more important in this context.

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Lizette

10 months ago

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

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Johanna

10 months ago

Wait, is it really that straightforward?

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Graciela

11 months ago

Agreed! Without that assumption, everything falls apart.

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Derrick

11 months ago

Definitely B, going concern is key for financial statements.

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Lorean

11 months ago

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

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Roy

11 months ago

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

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Mirta

11 months ago

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

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Lili

11 months ago

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

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Laura

11 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.

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Sharmaine

11 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.

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Meaghan

11 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.

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Broderick

1 year ago

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

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Alaine

1 year ago

D) Fair value

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Kenda

1 year ago

C) Cost

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Rosendo

1 year ago

B) Going concern

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Helene

1 year ago

A) Materiality

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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!

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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.

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Enola

1 year ago

D) Fair value

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Francine

1 year ago

C) Cost

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Cordie

1 year ago

B) Going concern

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Maryann

1 year ago

A) Materiality

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Dahlia

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.

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Murray

1 year ago

D) Fair value

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Edmond

1 year ago

C) Cost

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Daniel

1 year ago

B) Going concern

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Carey

1 year ago

A) Materiality

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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!

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Kristian

1 year ago

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

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Nohemi

1 year ago

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

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Shawn

1 year ago

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

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Alexia

1 year ago

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

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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.

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Ciara

1 year ago

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

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Ernestine

1 year ago

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

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Dahlia

1 year ago

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

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Joni

1 year ago

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

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Olive

1 year ago

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

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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.

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Whitley

1 year ago

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

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Francoise

1 year ago

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

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Jaime

1 year ago

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

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Leslie

1 year ago

Yes, going concern is crucial for accurate financial reporting.

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Lisbeth

1 year ago

I think the answer is B) Going concern.

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