Anonymous
Anonymous asked in Education & ReferenceHigher Education (University +) · 1 decade ago

is it a magic trick?

if ken lay has 10 million and his company stakeholders has lost 4 billion dollars, where did the rest of the money go? there should be checks issued to someone? right? the vanishing act has never been explained. i assumed that all the money went in to his offshore bank accounts. when people invested into the company, who was the AP manger paying? (real answers of accounting only)

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  • 1 decade ago
    Favorite Answer

    Its money they said they had. The inflated their value. Its not cash they ever really had.

  • ?
    Lv 4
    1 decade ago

    The company could be worth 10 million...that doesn't mean they have 10 million dollars.

  • 1 decade ago

    Accruals.

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