Executives at WorldCom Committed an $11 Billion Fraud by Capitalizing

question 88

Multiple Choice

Executives at WorldCom committed an $11 billion fraud by capitalizing costs that should have been expensed.This fraud had many effects on WorldCom's balance sheet.Which of the following does not describe one of the misstatements that resulted on the company's balance sheet?

• A)Total assets were too high.
• B)Retained earnings were too high.
• C)The balance sheet was in balance.
• D)Total liabilities were too low.

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Definitions:

Situational

Relating to or dependent upon a particular set of circumstances or context at a given time.

Actual

Real and existing in fact, not merely potential or theoretical.

Perceived

Recognized, seen, or interpreted by a person in a certain way, based on sensory input and subjective interpretation.

Self-concept

An individual's perception of themselves, including beliefs about one's abilities, appearance, and personality.