How Much Debt Did Enron Really Have

question 107

Multiple Choice

How much debt did Enron really have?

• A) $5 billion
• B) $13 billion
• C) $38 billion
• D) None of the above

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Definitions:

Variable Cost Method

An accounting method that allocates costs to goods produced based on variable costs, which change with the level of production.

Markup Percentage

Markup percentage is a financial ratio that calculates the difference between the cost of a good or service and its selling price, expressed as a percentage over the cost.

Variable Cost Method

An accounting strategy where costs vary in relation to production or sales levels, focusing on costs that change with output.

Desired Profit

The amount of net income that a business aims to generate, set as a goal in financial planning and performance evaluation.