Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

One way Enron manipulated its financial statements was to sell assets at inflated prices to other firms, while giving a promise to buy back those assets at a later date. The incoming cash was recorded as revenue, but the promise to buy back the assets was not disclosed. Which of the following is one of the ways that such a transaction is deceptive?

A) The assets should have been listed on the balance sheet as long term assets.

B) Cash raised by selling assets should not be recorded as revenue.

C) The cash raised should have been recorded as short-term loans.

D) The off balance sheet promises to repurchase assets should have been disclosed in management discussion and analysis (MD&A) or notes to the financial statement.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M946634

Have any Question? 


Related Questions in Basic Finance

1 what is meant by a sale-leaseback why would a building

1. What is meant by a sale-leaseback? Why would a building investor want to do a sale-leaseback of the land? What is the benefit to the party that purchases the land under a sale-leaseback? 2. Why might an investor prefe ...

1 explain what happens to the postmerger earnings per share

1. Explain what happens to the postmerger earnings per share figure when a company with a relatively high P/E ratio acquires a company with a lower P/E ratio, assuming that the exchange ratio is based on current stock ma ...

Which financial variable must be multiplied by the net

Which financial variable must be multiplied by the net profit margin ratio in order to calculate the return on assets ratio? What is the numerical value of the debt ratio if the debt-to-equity ratio is equal to 4?

In practice how could you measure that much stretch in a

In practice, how could you measure that much stretch in a bolt of this size? The bolt of problem 1 is put in service and its temperature rises to 2508F. How much change in length of the bolt would you expect this increas ...

1 oil and gas companies must disclose quantity estimates

1. Oil and gas companies must disclose quantity estimates for proved oil and gas reserves and the major factors causing changes in these resource estimates. Briefly indicate why this disclosure can be significant. 2. For ...

Read and study the following experimental research

Read and study the following experimental research designs. For each: a. Identify and provide a label for the independent and dependent variables. b. Indicate the number of levels in the independent variable, and provide ...

Hotfoot shoes would like to maintain its cash account at a

HotFoot Shoes would like to maintain its cash account at a minimum level of $43,000, but expects the standard deviation in net daily cash flows to be $5,800, the effective annual rate on marketable securities to be 5.7 p ...

1 how has transportation cost as a percentage of total

1. How has transportation cost, as a percentage of total logistics cost, tracked since 1980? 2. Describe the logistics value proposition. Be specific regarding specific customer accommodation and cost. 3. Describe the fu ...

Use secondary sources to write a report about typing skills

Use secondary sources to write a report about typing skills. You are the director of training for an aerospace firm located in Seattle. Your manager, Charles R. Underwood, vice president of human resources, is concerned ...

1 based on the following information construct a

1. Based on the following information, construct a traditional financial institution balance sheet AND a balance sheet including off-balance sheet items. Market value of assets = 200                                      ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen