Which of the Following Is the Main Lesson That Analysts

question 99

Multiple Choice

Which of the following is the main lesson that analysts and investors should take from the case of Enron?

• A)The usefulness of financial statements to investors is entirely dependent on the ethics of those constructing them.
• B)It is not possible to effectively evaluate a company unless all the financial statements are fully and correctly prepared.
• C)The information in financial statements should be viewed extremely critically.
• D)Readers of even fraudulent financial statements can spot signs of a firm's financial health if those statements are read fully and with care.
• E)Financial statements are too easily manipulated and cannot be taken at face value.

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Definitions:

Ethnic Groups

Categories of people who identify with each other based on common ancestral, social, cultural, or national experiences.

Transferred

Moved from one place, person, or thing to another.

HIV

Human Immunodeficiency Virus, a virus that attacks the immune system and can lead to AIDS if not treated.

Child

A young human being below the age of puberty or below the legal age of majority.