ACFE CFE Exam - Topic 3 Question 35 Discussion

Actual exam question for ACFE's CFE exam

Question #: 35
Topic #: 3

[All CFE Questions]

Forced reconciliation of the account says:

Ato conceal shrinkage is to alter inventory record so that it matches the physical inventory count.

Bto conceal inventory is to alter shrinkage record so that it matches the physical inventory count.

Cto conceal shrinkage is to change the perpetual inventory record so that it matches the physical inventory count.

Dto conceal write-offs is to change the perpetual inventory record so that it matches the physical inventory count.

Show Suggested Answer

Suggested Answer: A

by Jade at Apr 19, 2023, 05:43 PM

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Ciara

4 months ago

I thought it was C at first, but A seems right now.

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Lorriane

4 months ago

B is misleading, it’s definitely A.

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Valene

4 months ago

Wait, can you really just change records like that?

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Marion

5 months ago

Totally agree, A makes the most sense.

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Josephine

5 months ago

A is the correct definition.

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Art

5 months ago

I vaguely recall that forced reconciliation involves adjusting records, but I can't remember if it's about shrinkage or write-offs. This is tricky!

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Tony

5 months ago

I feel like the term "forced reconciliation" was used in a different context in our studies. Is it really about changing perpetual records?

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Irving

5 months ago

I remember practicing a question similar to this, and I think it was about altering inventory records to hide discrepancies. Could be option A?

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Ma

5 months ago

I think forced reconciliation is about adjusting records to match physical counts, but I'm not sure if it's specifically about shrinkage or something else.

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Lynette

5 months ago

Device Manager? Really? That's for managing local hardware, not connecting to Azure. I'm pretty sure the answer has to be either the Azure portal or Windows Admin Center.

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Veronika

5 months ago

No join condition? That doesn't sound right to me. I think I'll eliminate that option and focus on the other choices to figure out the correct answers.

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James

10 months ago

Forced reconciliation? Sounds like a job for the accounting Hulk! Anyway, I'll go with C since it directly mentions concealing shrinkage.

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Jacob

8 months ago

User 3: I think the answer is C, to conceal shrinkage by changing the perpetual inventory record.

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Jolene

9 months ago

User 2: I agree. It's important to match the records with physical inventory.

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Diego

9 months ago

User 1: Forced reconciliation is serious business.

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Cristal

10 months ago

Haha, this question is a real 'shrinkage' of my brain power! But in all seriousness, I think C is the correct answer.

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Leatha

10 months ago

I'm going with D on this one. Forced reconciliation is a way to hide write-offs and make the books look better than they really are.

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Aja

10 months ago

Option C seems the most accurate to me. Forced reconciliation is definitely about aligning the perpetual inventory records with the physical count, in order to conceal any shrinkage.

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