Buy custom Accounting Essay w/ Enron Scandal
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| Topic: |
Business
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| Number of pages / Number of words: |
11 / 2928 |
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The way that they did is not told, but they disguised expenses as revenues. At the end of a period the auditors make sure all the numbers check out. When the auditors audited Enron, they saw that there was more revenue than expenses. This made the companies value increase. The stock sky rocketed and many people invested in it...
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The stock sky rocketed and many people invested in it. When the truth was discovered, the actual value of the company fell dramatically. Instead of being a profitable corporation, it was actually in debt. The stock fell quickly. Investors lost almost all of their money. The company went bankrupt. Everyone lost their jobs and their retirement savings...
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