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
C
You might also like to view...
Add several communication principles to the list in Chapter 13 that are conducive for a win-win strategy.
What will be an ideal response?
Investors are often interested in the amount of net income distributed as dividends. Where would investors look for this information in the company's annual report?
A. Notes to the financial statements B. Balance Sheet C. Income Statement D. Statement of Retained Earnings
Which of the following is covered under a fire insurance policy without any extended coverage?
A. A fire caused by extreme heat in desert areas B. A fire caused by an electrical fault in a factory C. Smoke arising out of a singed electrical circuit D. Smoke damage as a result of excessively overcooked food
A loan commitment is an agreement to provide a loan up to a certain dollar amount if a customer requests the loan during a specific time period
Indicate whether the statement is true or false