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 changes to disaster recovery programs were being

1. What changes to disaster recovery programs were being proposed in 2009? 2. Investigate how civil defense and emergency management evolved in your state or city. Look at such factors as when it was created, its origina ...

Flip a set of ten coins one hundred times and record the

Flip a set of ten coins one hundred times, and record the number of heads and tails each time. Construct a frequency distribution of the observed data. Check whether the observed frequency distribution appears to match t ...

Show how to combine a currency swap paying swiss francs at

Show how to combine a currency swap paying Swiss francs at a floating rate and receiving Japanese yen at a floating rate with another currency swap to obtain a plain vanilla swap paying Swiss francs at a floating rate an ...

Answer the following questions as they relate to implied

Answer the following questions as they relate to implied volatilities. a. Can implied volatilities be expected to vary for options on the same stock with the same exercise prices but different expirations? b. Can implied ...

Evaluate charts in a business publicationfind three or more

Evaluate charts in a business publication Find three or more charts in business articles from newspapers or magazines (e.g., Business Week or Fortune). Make a copy of each chart and the written information associated wit ...

1 discuss how any company can become an mnc what are some

1. Discuss how any company can become an MNC. What are some of the options available to companies that allow them to use international markets and locations competitively? 2. Discuss some reasons why reductions in world ...

Grind co is considering replacing an existing machine the

Grind Co. is considering replacing an existing machine. The new machine is expected to reduce labor costs by $153,000 per year for 5 years. Depreciation on the new machine is $124,000 compared with $86,000 on the old mac ...

1 financial ratios are used extensively in annual reports

1. Financial ratios are used extensively in annual reports to interpret and explain financial statements. Comment. 2. List the sections of annual reports where ratios are most frequently located, in order of use. 3. Acco ...

Why might households and firms in a foreign country prefer

Why might households and firms in a foreign country prefer to use U.S. dollars rather than their own country's currency in making transactions? What advantages or disadvantages do foreign governments experience because o ...

Anne has been researching investments and bought a stock

Anne has been researching investments and bought a stock today for $21 per share. Anne's research tells her that she will be able to sell the stock in 5 years for $61 per share. In this case, what interest rate, in perce ...

  • 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

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

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