financial Accounting

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Your ethics assignment is on the Worldcom accounting scandal. You are to answer the following answers completely and concisely. Please provide as much detailed, relevant, and important information as possible in your answers while adhering to the 2-3 page length of the assignment.

Required:

  1. 1)  Research the Worldcom accounting scandal using the internet or other sources.

  2. 2)  Worldcom misled investors, lenders, and other stakeholders by not following proper

    Generally Accepted Accounting Principles. You are to describe the two primary ways

    the company increased net income by violating GAAP.

  3. 3)  In addition, Worldcom violated some of the accounting principles, assumptions and

    qualitative characteristics we discussed in Chapter 1. Describe two of the other accounting principles, assumptions or qualitative characteristics that were violated. See pages 28-31 of our textbook and slides 26-27 from the Chapter 1 Powerpoint (in Blackboard) for assistance.

  4. 4)  Before the accounting violations were discovered, they resulted in higher net income for the company. How did this higher net income benefit the following 2 stakeholders:

    1. The company

    2. The bonuses of top executives

  5. 5)  After the accounting improprieties were uncovered, they resulted in serious

    consequences for several groups of stakeholders. Describe the penalties, punishment

and/or other negative repercussions to the following stakeholders:

  1. The company

  2. Employees of the company

  3. The company’s key executives: CEO Bernard Ebbers and CFO Scott Sullivan

  4. Shareholders who owned Worldcoms stock at the time the scandal was

    reported.

Format:

  •   Length

  •   Use Microsoft Word (“.doc” or “.docx”)

  •   Font = Times New Roman 12 point font

  •   Margins= one inch margins

  •   Single spacing

  •   You must cite a minimum of 4 sources

 

    • 7 years ago
    • 20
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