In 2002, the Enron Corporation Was Accused of Falsifying Information

question 213

Multiple Choice

In 2002, the Enron Corporation was accused of falsifying information regarding liabilities on Enron's balance sheets, thereby

• A)increasing Enron's assets on the balance sheet.
• B)reducing Enron's profit on the balance sheet.
• C)increasing Enron's net worth on the balance sheet.
• D)reducing Enron's net income on the income statement.

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Definitions:

Independent Appraiser

A certified professional who provides an unbiased opinion on the value of an asset, often used in real estate transactions, without any direct connection to the buyer or seller.

Journal Entry

A record in accounting that represents each transaction with debits and credits in financial accounts.

Plant Assets

Long-term tangible assets that are used in the production of goods or services and are not intended for resale, including buildings, machinery, and equipment.

Double-Declining Balance

An accelerated method of depreciation where an asset loses value at double the rate of traditional straight-line depreciation.