Lehman Brothers (Now Bankrupt) Was Able to Use an Accounting

question 260

Multiple Choice

Lehman Brothers (now bankrupt) was able to use an accounting strategy known as Repo 105 to spin debt off its books so that it appeared to be less leveraged than it was. Which of the following is correct?

• A) Lehman's accounting strategy was similar to that of Enron.
• B) Lehman's accounting strategy was similar to that of WorldCom.
• C) Lehman's accounting strategy was similar to that of Bausch & Lomb.
• D) Lehman's accounting strategy was similar to that of Tyco.

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Definitions:

Fill Handle

A feature in spreadsheet software that allows users to extend a series of values, formulas, or data by dragging a small square at the corner of the selected cell(s).

NETWORKDAYS Function

A function in spreadsheets that calculates the number of working days between two dates, excluding weekends and any specified holidays.

Rotate Text

Altering the orientation of text to a specified angle, deviating from the standard horizontal alignment.

Fill Handle

A feature in spreadsheet programs that allows users to extend a series of data or formulas to adjacent cells by dragging the handle.