Of the Following, Which Is NOT True of the Enron

question 20

Multiple Choice

Of the following, which is NOT true of the Enron financial scandal?

• A) It was a key event leading the U.S. Congress to pass the Sarbanes-Oxley Act of 2002.
• B) Unfortunately, it was always regarded as an unethical company.
• C) In 2000, corporate revenues exceeded $100 billion.
• D) The company's former president, Jeffrey Skilling, led Enron to abuse an accounting practice known as mark to market accounting.
• E) The truth about Enron was revealed in 2001.

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Definitions:

Estimated Inventory

Estimated inventory represents a company's approximation or forecast of the inventory it has, which can be used for planning, budgeting, or as part of the inventory valuation process.

Production Budget

A financial plan that estimates the number of units to be produced to meet the sales goals and inventory needs.

Cassette Recorders

Electronic devices used for recording audio onto a magnetic tape housed in a cassette.

Cash Budget

A plan that estimates future cash inflows and outflows over a specific period of time.