Which action was a key element in the WorldCom fraud case?
A)Recording bartered exchange transactions as revenue.
B)Overstating cash by falsely recording cash held at major banks.
C)Recognizing revenue on the sale of impaired assets.
D)Concealing large losses related to securities investments.

Question

Quizplus · Accepted Answer

WorldCom's fraud primarily involved improperly recording line costs as capital expenditures rather than expenses and inflating revenue with bogus accounting entries. Recording bartered exchange transactions as revenue was not specifically cited in the WorldCom case; however, the manipulation of line costs and revenue recognition practices were central to the fraud.

Which Action Was a Key Element in the WorldCom Fraud