Detecting Accounting Fraud 1st Edition by Cecil Jackson

Exercise 35

With its Prepay Transactions, Enron would enter into a contract to deliver a commodity in the future at a specified price. It would then sell the contract at a discount and receive cash up front. It then would take on an obligation to buy the commodity required for delivery and to pay for it in installments. How did Enron describe the resulting rights and obligations on its balance sheet? (a) As accounts receivable and accounts payable.
(b) As loans payable and loans receivable.
(c) As "assets from price risk management activities" and "liabilities from price risk management activities."
(d) Enron completely omitted the resulting rights and obligations from its balance sheet.