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Enron - the crooked E

Total questions: 15

Worksheet time: 8mins

Name
Class
Date
1.

what happened in the ENRON scandal

a)

the company cooked the books sand pulled of shady accounting tricks

b)

the company donated its funds with its custumers

c)

lost of income to the shareholders

2.

who founded the company

a)

Bill gates

b)

Ken Lay

c)

Jeffrey Skilling

3.

how did ENRON trick people to invest in their stocks

a)

used mark to market accounting( recognizing profit that is not profit)

b)

they put their liabilities in other side companies

c)

auditors were bribed

d)

all of the above

4.

what rules are made after the incident

a)

All auditors have been fired to prevent future scandals

b)

auditors have stricter rules and CEO and CFO have to certified statements to prevent backing out

c)

All energy companies have put to shutdown for inspection if other energy companies are included

5.

Enron had connections with:

a)

George W. Bush

b)

Steve Jobs

c)

Mark Zuckerburg

d)

all the above

6.

The first sign of trouble was:

a)

selling fake stocks

b)

traders moving money into fake accounts

c)

market to market accounting

d)

making fake deals

7.

Jeff Skilling created competition by:

a)

giving stocks away

b)

implementing an employee rating system

c)

creating a 401K system

d)

none of the above

8.

The accounting firm that did the (ethically and financially flawed) audits for Enron was:

a)

Price Water House

b)

Auther Anderson

c)

Ernst & Young

d)

Deloitte & Touish

9.

The company motto was... (ironically)

a)

Who did it?

b)

Ask Why?

c)

When Investment doesnt work?

d)

Today?

10.

The employees of Enron were advised to buy ______________.

a)

insurance

b)

stocks

c)

certificates of retirement

d)

company apparel

11.

Enron's business ventures included all the the following EXCEPT:

a)

the weather

b)

gas

c)

electricity

d)

IRA's

12.

Enron took control of California and ____________ began to occur to create demand ( all caused by Enron)

a)

limited cash flow

b)

resource depletion

c)

Power outages

d)

deforestization

13.

The home of Enron was _______________.

a)

dallas

b)

houston

c)

California

d)

Colorado

14.

the BEST way to describe the way Enron was able to show profits was called: _______________________________ accounting.

a)

shell accounts

b)

offshore

c)

Market to market

d)

Tomfoolery

15.

When employees were being told to buy shares, the officers of Enron were ______________________.

a)

retiring

b)

selling their stock

c)

making hundrends of milions

d)

all the above