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| Topic: |
Business
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| Number of pages / Number of words: |
4 / 1110 |
Essay's paper body
Sullivan back down. However, as Ms. Cooper would find out that was just the tip of the iceberg of all the accounting fraud that was going on inside her company.
Following a tip, Glyn Smith, a senior manager under Ms. Cooper brought to her attention that WorldCom was cooking the books. WorldCom was booking operating expenses as capital expenditures...
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WorldCom was booking operating expenses as capital expenditures. Capital expenditures, things such as equipment can be depreciated and expenses over a period of years, thereby not causing a big hit at one time but rather spreading it out. Operating expenses such as salaries must be immediately expensed to the quarter they occur and are a direct hit to the bottom line...
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