$2.$ I have placed Enron$$s $2000$ annual report on Blackboard. Look at the $2000$ balance sheet, and

$-$ indicate what particular assets, if any, you suspect might be overstated

$$ Trade Receivables

$$ Assets from price risk management activities

$-$indicate what particular liabilities, if any, you suspect might be understated.

$$ Liabilities from price risk management activities

Explain what makes you suspicious of these items.

Price risk management was significantly overstated, especially between $2000$ and $1999,$ and it appears that they were inflating the value of the assets.

Liabilities from price risk management activities were understated because this account was misleading investors. Similar to the price risk management, the liability side was overstated.