In 2002, the Enron Corporation Was Accused of Falsifying Information

question 187

Multiple Choice

In 2002, the Enron corporation was accused of falsifying information regarding liabilities on Enron's balance sheets, thereby

• A)increasing Enron's assets on the balance sheet.
• B)reducing Enron's profit on the balance sheet.
• C)increasing Enron's net worth on the balance sheet.
• D)reducing Enron's net income on the income statement.

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Definitions:

Public Exchanges

Marketplaces where stocks, bonds, and other securities are traded among investors.

Cash Discounts

Reductions in the amount due by a customer if payment is made within a specified period, used as an incentive for quick payment.

Cash Payments

Transactions in which cash is used to settle debts, purchase goods, or services at the time of the purchase.

Cash Short

A situation where the amount of cash on hand is less than what is recorded on the books, often indicative of errors or theft.