A CFO Whose Compensation Plan May Have Had the Effect

question 80

Multiple Choice

A CFO whose compensation plan may have had the effect of creating an incentive for unethical actions includes:

• A)Kenneth Lay
• B)Scott Sullivan
• C)Bernie Madoff
• D)Dennis Kozlowski

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Definitions:

Long-term Investments

Assets that a company intends to hold for more than one fiscal year, such as stocks, bonds, or real estate.

Property Plant

Assets of a tangible nature, like buildings and machinery, used in operations and expected to be used over several years.

Equipment Section

Part of a company's balance sheet or financial statements that lists the tangible assets used in operations, like machinery, along with their net book values.

Balance Sheet

A financial statement that provides a snapshot of a company's financial position, showing assets, liabilities, and equity as of a specific date.