The Main Accounting Issues in the Nortel Networks Case Were

question 21

Multiple Choice

The main accounting issues in the Nortel Networks case were:

• A) Premature revenue recognition and hidden cash reserves
• B) Capitalization of operating expenses and hidden cash reserves
• C) Premature revenue recognition and off-balance-sheet entities
• D) Capitalization of operating expenses and off-balance-sheet entities

---

Definitions:

Alma Mater

A school, college, or university from which one has graduated or attended.

Number Rules

Guidelines or principles related to the use, manipulation, and understanding of numbers in various contexts.

Number Expression

An arrangement of numbers and mathematical symbols that collectively represent a numerical value or equation.

Full-grown Giraffe

A fully matured giraffe, typically characterized by its long neck and legs, and distinctive coat patterns.