Which of the Following Was Not True According to the Enron

question 50

Multiple Choice

Which of the following was not true according to the Enron case?

• A) Fastow developed the concept of buying up oil and gas companies to establish SPEs
• B) Fastow worked to structure ventures that met the conditions under GAAP to keep the partnership activities off Enron's books and on the separate books of the partnership
• C) Fastow created SPEs that borrowed money from banks and transferred it to Enron in a sale of an operating asset no longer need by Enron
• D) The SPE created by Fastow enabled Enron to keep debt off its books while benefiting from transfer and use of the cash borrowed by the SPE

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Definitions:

Size Of Clasts

The size of clasts refers to the diameter or dimension of individual particles or fragments in sedimentary rocks, indicating the energy of the environment where they were deposited.

Large Clasts

Big pieces or fragments of rocks or minerals found within sedimentary rocks; they can vary in size from pebbles to boulders.

Weak Current

A water or air flow that moves sluggishly and with less force compared to stronger currents.

Steep Slopes

Areas of land that have a sharp incline, often associated with mountains or hillsides.