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NEW QUESTION # 33
___________ and __________ are used to increase (or decrease) the equity account.
Answer: D
NEW QUESTION # 34
Which of the following is NOT a method for stealing inventory and other assets?
Answer: C
Explanation:
Detailed Explanation:
* Rationale for Correct Answer:Recognized schemes for stealing inventory include:
* Larceny schemes (direct theft)
* Asset requisition and transfer schemes (false requisitions to divert assets)
* Purchasing and receiving schemes (over-ordering or falsifying deliveries).
"Sales & Equipment handling" is not a defined fraud scheme, making D correct.
* Analysis of Incorrect Options:
* A. Larceny schemes - Valid theft method.
* B. Asset requisition and transfer - Document manipulation method.
* C. Purchasing and receiving schemes - Valid misappropriation scheme.
* Key Concept:Inventory theft schemes under the Fraud Tree.
Reference:ACFE Fraud Examiners Manual (2020 International Edition), Inventory and Other Assets - Theft Schemes.
NEW QUESTION # 35
Which of the following scenarios is the MOST ACCURATE example of insurer health care fraud?
Answer: C
Explanation:
Detailed Explanation:
* Rationale for Correct Answer:Insurer health care fraud occurs when the insurance company itself engages in deception for financial gain. Submitting inflated cost data to regulators in order to justify rate increases is a direct example of insurer fraud.
* Analysis of Incorrect Options:
* A. Intermediary verifying claims - Proper procedure, not fraud.
* C. Passing on negotiated rates - Legitimate practice.
* D. Denying incomplete claims - May be harsh, but not fraudulent.
* Key Concept: Insurer fraud vs. provider or claimant fraud.
Reference: ACFE Fraud Examiners Manual (2020), Health Care Fraud: Insurer Schemes.
NEW QUESTION # 36
Which of the following is a common red flag of a bid tailoring scheme?
Answer: C
NEW QUESTION # 37
Depreciation is especially applicable when companies try to overvalue their assets and net worth; the lower their depreciation expense, the higher the company's profits.
Answer: A
NEW QUESTION # 38
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