Question 1

What was the goal of the VA following its Government Accountability Report?

Accepted Answer

A)   Have patients wait no longer than 30 days for treatment
B)   Have every patient provide a "satisfactory" rating on their VA visits
C)   Have patients wait no longer than 14 days for treatment
D)   Both b and c

Question 2

Who said, "Subprime mortgages can be productive and fruitful. We just have to put boundaries in place"?

Accepted Answer

A)   CEO of Citigroup
B)   CEO of Merrill Lynch
C)   North Carolina's Attorney General
D)   Alan Greenspan

Question 3

Ethics training is an effective way to curb employees' unethical conduct.

Accepted Answer

A) True 
 B)False

Question 4

Loans to corporate executives are now illegal under Sarbanes-Oxley.

Accepted Answer

A) True 
 B)False

Question 5

What acquisition fell through because of Diamond's problems with its accounting?

Accepted Answer

A)   The acquisition of Pringles
B)   The acquisition of Pepsi
C)   The acquisition of a chain of grocery stores
D)   No acquisition fell through

Question 6

What job did Bernie Ebbers hold while he was in Canada?

Accepted Answer

A)   Motel owner
B)   Junior high basketball coach
C)   Long distance operator
D)   None of the above

Question 7

Lehman Brothers (now bankrupt)  was able to use an accounting strategy known as Repo 105 to spin debt off its books so that it appeared to be less leveraged than it was. Which of the following is correct?

Accepted Answer

A)   Lehman's accounting strategy was similar to that of Enron.
B)   Lehman's accounting strategy was similar to that of WorldCom.
C)   Lehman's accounting strategy was similar to that of Bausch & Lomb.
D)   Lehman's accounting strategy was similar to that of Tyco.

Question 8

When was the Beech-Nut hold-harmless agreement signed?

Accepted Answer

A)   After the suspicions about the syrup content of the concentrate
B)   When the contract with the supplier was first entered into
C)   After the criminal cases
D)   None of the above

Question 9

FINOVA was a second-tier lender.

Accepted Answer

A) True 
 B)False

Question 10

What happened to Cliff Baxter?

Accepted Answer

A)   He was convicted of all charges
B)   He was acquitted of all charges
C)   He committed suicide
D)   Both a and c

Question 11

WorldCom's accounting was confusing because of its mergers and acquisitions.

Accepted Answer

A) True 
 B)False

Question 12

Who is Zeev Kaplansky?

Accepted Answer

A)   Employee of Universal
B)   Beech-Nut's lawyer
C)   Beech-Nut's head of chemistry
D)   None of the above

Question 13

Who warned Tyco officers about accounting issues and odd payments at Tyco?

Accepted Answer

A)   Frank E. Walsh
B)   Mark Belnick
C)   Patricia Prue
D)   Wilmer Cutler

Question 14

Provide the accounting for the following: 
            Operating Revenues:                              $10,000,000 
            Nonrecurring, non-operating gain:           $4,000,000 
            Nonrecurring, non-operating loss:            $8,000,000 
            Operating expenses:                                $6,000,000

Accepted Answer

EBITDA is a $4,000,000 profit ($10,000,0...

Question 15

Enron did not disclose that an officer of the company was a principal in the off-the-book entities.

Accepted Answer

A) True 
 B)False

Question 16

Richard Scrushy said, "Shine a light on someone - it's funny how numbers improve." How does this Scrushy philosophy compare with those of other CEOs in the cases you have studied?

Accepted Answer

The students should discuss Q.T. Wiles a...

Question 17

Joseph Jett:

Accepted Answer

A)   Held his first job at Kidder Peabody.
B)   Held a Harvard MBA.
C)   Was convicted of securities fraud.
D)   None of the above

Question 18

Discuss the dangers in earnings management.

Accepted Answer

While earnings management begins with th...

Question 19

When Enron first proposed its off-the-book entities, David Duncan clearly had concerns. Discuss what he did about those concerns.

Accepted Answer

Students should discuss Duncan's e-mail ...

Question 20

The board waived Enron ethics code provisions at least three times.

Accepted Answer

A) True 
 B)False

Exam 4: Ethics and Company Culture

Ethics training is an effective way to curb employees' unethical conduct.

Correct AnswerverifiedShow Answer

What job did Bernie Ebbers hold while he was in Canada?

Correct AnswerverifiedShow Answer

What acquisition fell through because of Diamond's problems with its accounting?

Correct AnswerverifiedShow Answer

Joseph Jett:

Correct AnswerverifiedShow Answer

When was the Beech-Nut hold-harmless agreement signed?

Correct AnswerverifiedShow Answer

Provide the accounting for the following: Operating Revenues: $10,000,000 Nonrecurring, non-operating gain: $4,000,000 Nonrecurring, non-operating loss: $8,000,000 Operating expenses: $6,000,000

Correct AnswerverifiedEBITDA is a $4,000,000 profit ($10,000,0...View AnswerShow Answer

Enron did not disclose that an officer of the company was a principal in the off-the-book entities.

Correct AnswerverifiedShow Answer

Richard Scrushy said, "Shine a light on someone - it's funny how numbers improve." How does this Scrushy philosophy compare with those of other CEOs in the cases you have studied?

Correct AnswerverifiedThe students should discuss Q.T. Wiles a...View AnswerShow Answer

Lehman Brothers (now bankrupt) was able to use an accounting strategy known as Repo 105 to spin debt off its books so that it appeared to be less leveraged than it was. Which of the following is correct?

Correct AnswerverifiedShow Answer

FINOVA was a second-tier lender.

Correct AnswerverifiedShow Answer

Discuss the dangers in earnings management.

Correct AnswerverifiedWhile earnings management begins with th...View AnswerShow Answer

What was the goal of the VA following its Government Accountability Report?

Correct AnswerverifiedShow Answer

Loans to corporate executives are now illegal under Sarbanes-Oxley.

Correct AnswerverifiedShow Answer

Who is Zeev Kaplansky?

Correct AnswerverifiedShow Answer

When Enron first proposed its off-the-book entities, David Duncan clearly had concerns. Discuss what he did about those concerns.

Correct AnswerverifiedStudents should discuss Duncan's e-mail ...View AnswerShow Answer

The board waived Enron ethics code provisions at least three times.

Correct AnswerverifiedShow Answer

Who warned Tyco officers about accounting issues and odd payments at Tyco?

Correct AnswerverifiedShow Answer

What happened to Cliff Baxter?

Correct AnswerverifiedShow Answer

Who said, "Subprime mortgages can be productive and fruitful. We just have to put boundaries in place"?

Correct AnswerverifiedShow Answer

WorldCom's accounting was confusing because of its mergers and acquisitions.

Correct AnswerverifiedShow Answer

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EBITDA is a $4,000,000 profit ($10,000,0...
View Answer

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The students should discuss Q.T. Wiles a...
View Answer

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While earnings management begins with th...
View Answer

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Students should discuss Duncan's e-mail ...
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