In general terms, WorldCom overstated its reported net income by:
A)Generating false expenses
B)Booking false revenue
C)Capitalizing line costs
D)Amortizing line costs quicker than allowed under GAAP
E)Recognizing future period's revenue

Question

Quizplus · Accepted Answer

WorldCom overstated its net income by capitalizing line costs, which are typically expenses, instead of recognizing them as expenses in the period they were incurred. This accounting manipulation inflated their profits.

In General Terms, WorldCom Overstated Its Reported Net Income By