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Unethical Financial Dealings in Companies

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Research 2 large companies that have had unethical financial dealings.

In layman's terms describe the accounting issues involved in their unethical conduct; each likely involved dramatically different specific accounting/financial/reporting issues.

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This solution discusses unethical financial dealings at Enron and AOL in 407 words.

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Research 2 large companies that have had unethical financial dealings.

In layman's terms describe the accounting issues involved in their unethical conduct; each likely involved dramatically different specific accounting/financial/reporting issues.

One large company that has had unethical financial dealings in the past is Enron. There are several accounting issues involved in their unethical conduct. We discuss one method that was used by Enron. The method is called mark-to-market accounting. Earlier the company listed actual costs of selling gas and actual revenues received from selling gas, but later it started using a method that requires that once a long term contract was signed, income was estimated as the present value of the net future cash flows. The actual ...

Solution provided by:
Hatim Baxamusa, MBA
Education
  • BSc , University of Calcutta
  • MBA, Eastern Institute for Integrated Learning in Management
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