Which of the following was not a signal in Enrons financial statements of its financial problems? (a)
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Which of the following was not a signal in Enron’s financial statements of its financial problems?
(a) Receivables increased as a percentage of sales.
(b) Its debt-to-equity ratio decreased over time.
(c) It used death-spiral financing in which it guaranteed that if Enron’s stock fell below certain specific amounts, it would issue more shares or pay cash to SPEs.
(d) All of the above were signals.
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Related Book For
Detecting Accounting Fraud Analysis And Ethics Global Edition
ISBN: 9781292059402
1st Global Edition
Authors: Cecil W. Jackson
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