At the Heart of the Enron and Worldcom Scandals Was

question 21

Multiple Choice

At the heart of the Enron and Worldcom scandals was

• A)a fraud by businessmen purporting to be more qualified than they actually were.
• B)a fraud by directors and senior managers involving accounts with overstated profits.
• C)a series of increasingly daring financial raids that was ultimately bound to fail.
• D)bribery and corruption of government officials.

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Definitions:

Credit Balance

A situation in an account where the total credits exceed the total debits, indicating the amount owed to the account holder or client.

Contingency Payment

A payment that is made only if certain specified conditions are met or certain outcomes occur.

Consolidated Land

Land owned by a parent company or a group of companies controlled by a single entity, combined for financial reporting purposes.

Common Stock

Represents ownership shares issued by a corporation, giving holders voting rights and a residual claim on the company's assets and earnings.