Enron Corporation committed fraudulent financial reporting by:
A)reporting expenses as plant assets.
B)overstating profits through bogus sales of nonexistent assets with inflated values.
C)bribing employees of the Securities and Exchange Commission.
D)all of the above

Question

Quizplus · Accepted Answer

Enron Corporation committed fraudulent financial reporting by overstating profits through bogus sales of nonexistent assets with inflated values. While Enron engaged in other unethical and illegal activities, such as attempting to bribe employees of the Securities and Exchange Commission, this was not part of their fraudulent financial reporting. Reporting expenses as plant assets was also a separate issue from their fraudulent financial reporting.

Enron Corporation Committed Fraudulent Financial Reporting By