Which of the Following Actions Was a Key Element of the Enron

question 82

Multiple Choice

Which of the following actions was a key element of the Enron audit fraud?

• A)Capitalizing line costs rather than expensing them.
• B)Misrepresenting bribes from suppliers as a reduction of operating costs.
• C)Shifting debt to off-balance sheet special entities.
• D)Concealing large losses related to securities investments.

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Definitions:

Cash Payments

Transactions that involve the immediate transfer of cash to settle a debt or purchase goods or services.

Acceptance

Acceptance in business refers to the agreement to the terms of a contract or an acknowledgment that a product or service meets the required standards.

Cash Receipts

Money received by a business during a given period, accounting for its cash inflow.

Cash Payments

Transactions that involve the outflow of cash from a company to settle dues such as expenses, debts, or purchases.