"Worldcom The Final Catalyst" Essays and Research Papers

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Worldcom The Final Catalyst

Q 1 Explain the nature of accounting fraud? A1. Background: The origin of WorldCom can be traced to the breakup of AT&T in 1983. The company began as Long Distance Discount Services Inc during 1983. LDD name was changed to WorldCom in 1995. To build the economies of scale that were critical success factor in long distance market it was imperative for WorldCom to grow its available volume off bandwidth as it lowered the per unit costs. Also the Telecommunication act of 1996 permitted long...

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Worldcom appeared to be a great success story. However, the success began to unravel with the accumulation of debt and expenses, the fall of the stock market, and long distance rates and revenue. It would take 2 years for the extent of these problems to become public, and accounting scandals like that of Worldcom would make history in the finance and telecommunication areas. While the intent is to make money to benefit a person or a group of people through illegal acts while disguising their illegal...

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WorldCom Ethical Scandal In the late 1990’s, WorldCom was a successful company and leader in the telecommunications world. They had merged with MCI and the company was regarded for being innovative and growth hungry. However, in the midst of all the mergers WorldCom CEO Bernard Ebberly began to mismanage the company. WorldCom was no longer meeting their numbers and it looked like stock prices would fall. Rather than letting this happen, executives at WorldCom doctored the books. CFO Scott...

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 CASE NAME: WorldCom: Keeping Planes In the Air 1. Briefly describe the important aspects of the situation. WorldCom had asked its accountant to make accounting entries dipping into reserves to help the company to meet its earnings target. WorldCom had been done these financial reserves for three quarters and intended to do so thereafter. The telecommunications industry was in a severe slump. WorldCom had a slow growth and rising cost. Vinson, who had done WorldCom’s...

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costs of $14,739 million for 2001. The journal entry for these transactions is debit to Line Costs Expense for $14,739 million and a credit to Cash for the same amount. Line costs are fees that WorldCom paid to other telecommunication companies to use their networks for long distance calls. d. WorldCom capitalized $3.8 billion in line cost expenses. These were transactions that involved payment to local telephone companies to use their fiber optic network. These line costs are also called access...

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Worldcom Case Study

WorldCom Case Study: Lack of Leadership, Lack of Ethics Emily Fearnow ORG 500- Foundations of Effective Management Colorado State University – Global Campus Dr. Cheryl Lentz May 15, 2011 WorldCom Case Study: Lack of Leadership, Lack of Ethics A multitude of choices made by executives at WorldCom led to the ultimate demise of the company as it was previously known, the employees and their livelihoods’, and the trust of the American people. In a time when corporations...

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Worldcom, Inc Corporate Bond Issuance

WORLDCOM, INC: CORPORATE BOND ISSUANCE Introduction This case raises many interesting questions concerning the record setting issuance of corporate debt by WorldCom, Inc. (“WorldCom”). Both the surprisingly voluminous structure of the proposed issuance and the foreboding macro-economic climate in which it was slated spark concerns over the risk and cost of the move. One of the first questions that must be addressed is whether WorldCom’s timing was appropriate. Next, the company’s choice of...

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Worldcom Failure

WorldCom Failure in relation to its Organizational Behavior LDR/531 - Organizational Leadership October 7, 2010 WorldCom Failure in relation to its Organizational Behavior INTRODUCTION Year 2002 saw an unprecedented number of corporate scandals: Enron, Tyco, Global Crossing, etc. In many ways, WorldCom is just another case of failed corporate governance, accounting abuses, and outright greed. Many people may question if there is a secret to operating a successful business in modern times....

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Worldcom Case

3) Roots of the scandal The roots of the fraud and the role of internal auditors As explained above, the fraud was implemented by the former CEO Bernard Ebbers and commited by his financial director Scott D. Sullivan. The technique used by Worldcom was pretty simple; indeed, he cooked the books by saving pure operating expenses such as maintenance network in capital expenditure instead of expenses in order to hide its decreasing earnings and to maintain the price of Worldcom’s stock. In summary...

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sucrose concentration (0.0M, 0.1M, 0.2M, 0.3M, 0.4M, 0.5M) conditions to be tested and cut thin slices of potatoes. We weight each section of potatoes before places them in there sucrose concentration. We recorded the final mass, then using the formula, % change in mass = final mass (g) – initial mass (g) x100, Initial mass we calculate the percent change in mass for each sucrose concentrations. This experiment was important to explore because...

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