Identify how balance sheet quality and earnings quality were impaired in each of the following accounting scandals:

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Waste Management 1988 - Falsely increased the useful lives of long-lived tangible assets

Enron 2001 - Underreported balance sheet long-term debt

WorldCom 2002 - Capitalized rather than expensed expenditures to maintain transmission lines

AIG 2003 - Booked debt as revenue

Lehman Brothers 2008 - Sold toxic assets (i.e., financial investments) to other banks with a buyback agreement, removing the toxic assets from its books.

Posted Date: Dec 02, 2021 02:03 PM

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Identify how balance sheet quality and earnings quality were impaired in each of the following accounting scandals:

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Waste Management 1988 Impairement was done as they overstated their income As they increase the usef... View the full answer

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