At the heart of the Enron and Worldcom scandals was
A)a fraud by businessmen purporting to be more qualified than they actually were.
B)a fraud by directors and senior managers involving accounts with overstated profits.
C)a series of increasingly daring financial raids that was ultimately bound to fail.
D)bribery and corruption of government officials.

Question

Quizplus · Accepted Answer

The Enron and Worldcom scandals were both centered around fraudulent accounting practices. In both cases, there were senior managers involved in manipulating the company's financial statements to overstate profits and hide losses. This led to a false sense of security for investors and ultimately resulted in the downfall of the companies. While there were certainly issues of fraud and corrupt business practices involved, it was the accounting fraud that lay at the heart of these scandals.

At the Heart of the Enron and Worldcom Scandals Was