Which of following is one of the way that such a transaction

Assignment Help Finance Basics
Reference no: EM13293660

One way Enron manipulated its financial statements was to sell assets at inflated prices to other firms, while giving a promise to buy back those assets at a later date. The incoming cash was recorded as revenue, but the promise to buy back the assets was not disclosed. Which of the following is one of the way that such a transaction is deceptive? a. The assets should have been listed on the balance sheet as long term assets. b. The cash raised should have been recorded as short-term loans c. Cash raised by selling assets should not be recorded as revenue d. The off balance sheet promises to repurchase assets should have been disclosed in management discussion and analysis or notes to financial statement.

Reference no: EM13293660

Questions Cloud

Design and develop a small or medium sized program : Write a C program that sorts strings into descending or ascending order (determined by the user of the program). develop your own program driver to illustrate that your program works. You may use any library functions you wish.
Evaluate the impact on human life : Evaluate the impact on human life of at least three different religions you have read so far. Be specific as you discuss how the particular religious tradition affects everyday life. Draw comparisons and contrasts between traditions as appropriate.
Find the maximum acceleration of harmonic oscillator : A simple harmonic oscillator with m=0.815 kg and total energy E=135 J has amplitude 1.35m,  Find the maximum acceleration
Why must a voltmeter be a high resistance instrument : why is it necessary that an ammeter be a low resistance instrument Why must a voltmeter be a high resistance instrument
Which of following is one of the way that such a transaction : One way Enron manipulated its financial statements was to sell assets at inflated prices to other firms, while giving a promise to buy back those assets at a later date. The incoming cash was recorded as revenue, but the promise to buy back the as..
Discuss the effectiveness of osha regulations on protecting : Analyze and discuss the effectiveness of OSHA regulations on protecting the well-being of workers and make at least one recommendation for improvement
What potential difference appears across the galvanometer : what potential difference appears across the galvanometer in;Two 150V voltmeters are being compared; meter A has 5000?/V while meter B has a total meter resistance of 750000-ohm, when the pointer is fully defected
What volume must the gas be compressed to increase pressure : A monatomic ideal gas is held in a thermally insulated container with a volume of 0.06m^3. What volume must the gas be compressed to increase the pressure to 140 kPa
Evaluate the magnitude and direction of the field : A proton moves perpendicular to a uniform magnetic field B at a speed of 1.10 107 m/s, evaluate the magnitude and direction of the field

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the linear regression and standard error forumla

What is the Linear Regression and Standard Error Forumla as a Stock Market Indicator, meaning for a trading platform?

  What is the firm before-tax cost of debt

A firm uses only debt and equity in its capital structure. The firm's weight of equity is 75%. The firm's cost of equity is 16% and it has a tax rate of 30%. If the firm's WACC is 13%, what is the firm's before-tax cost of debt?

  At what price will it be filled

Consider the following limit order book of a specialist. The last trade in the stock occurred at a price of $40. If a market buy order for 100 shares comes in, at what price will it be filled?

  Under the capm assumptions determine expected return

Assume the risk free return is 4% and the market portfolio has an expected return of 10% and a volatility of 16%. Johnson and Johnson Corporation stock has a 20 percent volatility and a correlation with the market of 0.06.

  Should hathaway go ahead with this project

What is the IRR of the project? If appropriate cost of capital is 12 percent, should Hathaway go ahead with this project?

  Reconciling analysts

You are a junior analyst at a well-known mutual fund company and are assigned to value, say, the stock of General Electric.

  Use the regular monthly payment formula

Calculate the monthly payment on a fixed-rate mortgage of $150,000, with 12% interest, over 30 years.

  Compute the marginal cost of capital on the additional

Compute the marginal cost of capital on the additional $150 million assuming the cost of debt stays the same.

  Calculate the amount of the salvage value

Calculate the present value of the $20,000 salvage value, again using monthly compounding and the given APR of 8%. Which option do you prefer, lease or buy and calculate the amount of the salvage value which would make you indifferent between leasi..

  Foreign currency transaction-interest-bearing note

On July 1, 2009, Houghton Company borrowed 200,000 euros from a foreign lender evidenced by an interest-bearing note due on July 1, 2010. The note is denominated in euros.

  Find expected dividend payout ratio

Calculation of Dividend Payout ratio - If the firm follows a residual dividend policy and has no other projects, what is its expected dividend payout ratio?

  The financial statements of an entity

The financial statements of an entity, with their accompanying schedules and explanatory notes, are the main means by which the users of general purpose financial reports inform themselves as to the operations, financial position, financial stability..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd