Enron referred to this transactions as "monetizing" or "syndicating" its assets:
A)Buy more assets using syndicated loans
B)Sell assets to third parties and record cash income as earnings
C)Hedge the company's assets
D)Lend money to third parties to buy assets
E)Recording profits on energy derivatives trading

Question

Quizplus · Accepted Answer

Enron would sell its assets to third parties and record the cash received as earnings. This would allow them to show increasing earnings and revenues, even though it did not reflect their actual business performance. This practice eventually led to Enron's downfall when it was exposed that they were hiding debt and inflating profits through these transactions.

Enron Referred to This Transactions as "Monetizing" or "Syndicating" Its