Online Access Free CFE-Fraud-Schemes-and-Financial-Crimes Practice Test

A person is said to be in ________ act, when the business which he transacts, or the money or property which he handles, is not for his own benefit, but for another person:

• A.None of the above
• B.Fiduciary Capacity
• C.Embezzlement
• D.Conversion

Which of the following statements is TRUE regarding income statements?

• A.A company's operating expenses are usually listed as the first line item.
• B.Gross revenue is the total amount of sales after deductions are applied.
• C.Net profit is a company's earnings before operating expenses have been deducted.
• D.Gross profit is the difference between net sales and cost of goods sold.

What can make it easy for an employee to skim sales or receivables?

• A.Internal audits and recording procedures
• B.Revenue sources and recording procedures
• C.Poor collection and recording procedures
• D.Register manipulations and recording procedures

Which of the following statements regarding using front businesses as a method of laundering money is MOST ACCURATE?

• A.Money launderers are able to benefit from using front businesses to hide their illegal income because they can easily avoid paying taxes on that income.
• B.Front businesses are a favored method because it is difficult to match the costs associated with providing customers food, liquor, and entertainment with the revenues produced.
• C.Front businesses can often be detected because these businesses have a large number of customers during peak operating hours and high income.
• D.Bars, restaurants, and nightclubs are commonly used as front businesses because these venues tend to charge relatively low prices and customers rarely vary in their purchases.

________ decrease assets and expenses and/or increase liabilities and/or equity.

• A.Journal Entries
• B.None of all
• C.Credit
• D.Debit