Enron Corporation Filed for Bankruptcy Following a Number of Revelations

question 96

Multiple Choice

Enron Corporation filed for bankruptcy following a number of revelations about its accounting procedures.Enron used a complex structure of corporations and off-the-books debt to mask its true financial picture from the markets.When asked about the propriety of Enron's reporting methods,many analysts have responded,"They simply did what most corporations do." Their comments:

• A)reflect analysis under the Nash model.
• B)reflect analysis under the Blanchard/Peale model.
• C)reflect rationalization.
• D)reflect Wall Street Journal analysis.
• E)none of the above