Question

Who of the following people from Enron are still living as of 2017?

a. Lea Fastow
b. Ken Lay
c. Cliff Baxter
d. All of the above

Pro forma numbers are:
a. Non-GAAP measures.
b. Illegal under Sarbanes-Oxley.
c. Both b and c
d. GAAP measures.

Answer 1

1. As of 2017, only a) Lea Fastow from Enron is still living.

2. Pro forma numbers are Non-GAAP measures, not necessarily illegal under the Sarbanes-Oxley Act, making option (a) the correct one.

Step-by-step explanation:

The question at hand deals with the status of certain individuals associated with the Enron scandal as of the year 2017 and an aspect of financial reporting related to pro forma numbers.

1. Enron Executives Status

Regarding the individuals mentioned from Enron:

Lea Fastow is alive.

Ken Lay passed away in 2006.

Cliff Baxter, unfortunately, passed away in 2002.

Based on this information, the correct option for the living status of the Enron executives mentioned is (a) Lea Fastow.

2. Pro Forma Numbers

Pro forma numbers are:

Non-GAAP measures that do not adhere to the Generally Accepted Accounting Principles (GAAP).

They are not illegal under the Sarbanes-Oxley Act as long as they are not used misleadingly. Therefore, the correct option regarding pro forma numbers is (a) Non-GAAP measures.