Scandals Involving Enron and WorldCom Drew Heightened Attention to the Possibility

question 27

Multiple Choice

Scandals involving Enron and WorldCom drew heightened attention to the possibility that financial statements might be misreported to portray a favorable impression of a company's financial results.Which of the following false impressions could be suggested by the ratio indicated?

• A)Greater control of expenses might be suggested by the net profit margin ratio.
• B)Greater efficiency in asset use might be suggested by the debt-to-assets ratio.
• C)Greater control of expenses might be suggested by the debt-to-assets ratio.
• D)Less financing risk might be suggested by the asset turnover ratio.

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Definitions:

Warm Body Recruitment

A hiring strategy focusing on filling positions quickly with minimal qualifications, prioritizing quantity over quality.

Volunteer Program Manager

A professional responsible for overseeing and organizing the work and activities of volunteers, ensuring effective support and utilization of their skills.

Marginal

Pertaining to changes or differences that are small or slight and often at the edge or periphery of consideration.

Targeted

Refers to actions or strategies narrowly directed towards a specific goal or audience.