Q & A Unit 13

Which financial statement provides information about a company's revenues and expenses over a specific period?

• A. Balance Sheet

• B. Income Statement

• C. Statement of Cash Flows

• D. Statement of Retained Earnings

In the presentation, how many types of financial reporting fraud are mentioned?

• A. 3

• B. 7

• C. 5

• D. 32

What is a potential consequence for a company if financial fraud is discovered?

• A. Increased trust from investors

• B. Bankruptcy and legal penalties

• C. Growth in stock price

• D. Improved reputation in the market

What is the core principle of segregation of duties in fraud prevention?

• A. One person should handle all aspects of a transaction.

• B. Employees should work together to complete all tasks.

• C. No one person should have control over all aspects of a financial process.

• D. Employees should be able to switch duties to improve flexibility.

What accounting technique did Enron use to modify its financial statements and hide poor performance?

• A. Double-entry accounting

• B. Cash accounting

• C. Mark-to-market accounting

  
  

• D. Accrual accounting

When did Enron file for bankruptcy?

• A. December 2, 2001

• B. October 2001

• C. January 2002

• D. November 2001

  
  

Which of the following best describes the primary reason for Enron's downfall?

• A.

  Overexpansion into foreign markets

• B.

  Poor customer service

• C.

  Decrease in energy demand

• D. Misrepresentation of financial data and hiding debts