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    Ethics issue of Enron's and Worldcom's accounting

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    During 2002, Enron corporation hid large liabilities from its balance sheet. Worldcom admitted to recording expenses as assets. Both companies tried to improve their financial appearance by window-dressing their financial statements. Is this an ethical issue? If yes, what is the ethical issue? Do research on these two companies.

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    Solution Preview

    Window dressing is, in fact, an ethical issue. This amounts to fraud. Fraud is defined as DECEIT, TRICKERY; specifically: intentional perversion of truth in order to induce another to part ...

    Solution Summary

    Solution clearly explains the ethical issues in Accounting of Enron & WorldCom.