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    Fraud in the Statement of Cash Flows

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    While the statement of cash flows is a useful tool for investors, it is not immune to fraud and misrepresentation. See the following article regarding how Enron used creative accounting to create a better (though not accurate) picture. I was quite amazed when I read this article. What are your thoughts.
    https://investingsidekick.com/enron-fraud/

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    https://brainmass.com/business/cash-controls/fraud-statement-cash-flows-607015

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    Fraud

    While the statement of cash flows is a useful tool for investors, it is not immune to fraud and misrepresentation. See the following article regarding how Enron used creative accounting to create a better (though not accurate) picture. I was quite amazed when I read this article. What are your thoughts.
    https://investingsidekick.com/enron-fraud/

    Enron found many ways to conceal their bad accounting in order to gain shareholders and investors.
    The purpose of the Statement of Cash Flows is to represent a firms major cash inflows and outflows for a given period (usually a fiscal year) If a company can generate cash from its operations, it would be able to do a number of things, including expansion of those operations, pay its bills ...

    Solution Summary

    This is a summary of an article written by Andy Blinston on how Enron manipulated its Statement of Cash Flows Financial Statement in order to make it more attractive to investors.

    $2.19

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