Which of the following is NOT a technique used by Enron to manage earnings?
A)Used reserves to increase earnings when reported amounts were too low.
B)Deliberately over stated the allowance for uncollectible and adjusted it downward in future years.
C)Used mark-to-market estimates to inflate earnings in violation of GAAP.
D)Selected which operating assets to "sell" to the SPEs, affecting the gain on transfer and earnings effect.

Question

Quizplus · Accepted Answer

Deliberately overstating the allowance for uncollectible and adjusting it downward in future years is not a technique used by Enron to manage earnings. All other options listed are techniques that Enron used to manage earnings.

Which of the Following Is NOT a Technique Used by Enron