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Issue:

Miscellaneous

 

Written by:

Denise T

 

Date added:

March 13, 2012

 

Level:

University

 

Grade:

A

 

No of pages / words:

11 / 2936

 

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7482 times

 

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The problem was that the accounting practices were questionable when they treated loans to look like revenue and did not record them as liabilities, such as notes payable. This risk is that they did not show the liabilities on the financial statements and misled creditors, investors, and customers into believing that they were making more money then they actually were...
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This risk is that they did not show the liabilities on the financial statements and misled creditors, investors, and customers into believing that they were making more money then they actually were. Another business risk Enron faced was losing all their investors as they continued to cash in their shares of Enron stock...
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