In General Terms, WorldCom Overstated Its Reported Net Income By

question 19

Multiple Choice

In general terms, WorldCom overstated its reported net income by:

• A)Generating false expenses
• B)Booking false revenue
• C)Capitalizing line costs
• D)Amortizing line costs quicker than allowed under GAAP
• E)Recognizing future period's revenue

---

Definitions:

Product Line Expansion

Adding related products to an existing product line to cater to a broader market or capitalize on the brand's reputation.

Consumer Products

Goods produced for personal use by the general public, including a wide range of items from household goods to personal electronics.

Industry Factors

Various external elements such as technology, regulation, and competition that influence a company's performance in its sector.

Primary Packaging

The first layer of packaging directly in contact with the product, designed to protect and preserve, as well as provide consumer information.