Kenneth Lay of Enron and Scott Sullivan of WorldCom Are

question 47

True/False

Kenneth Lay of Enron and Scott Sullivan of WorldCom are two examples of corporate __________.

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Definitions:

Net Income

A company's ultimate earnings after all taxes, costs, and expenses are subtracted from the gross income.

Depreciation

The systematic allocation of the cost of a tangible asset over its useful life, reflecting its consumption, wear and tear, or obsolescence.

Equity Method

An accounting technique used to record investments in other companies, recognizing income based on the investor's share of the investee's profits.

Subsidiary Earnings

Profits generated by a company that is majority-owned or fully owned by another company (the parent company).