Who Objected to WorldCom's Practice of Capitalizing Ordinary Expenses

question 179

Multiple Choice

Who objected to WorldCom's practice of capitalizing ordinary expenses?

• A) Scott Sullivan
• B) Cynthia Cooper
• C) Bernie Ebbers
• D) Jack Grubman

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Definitions:

Actuarial Gains and Losses

Gains or losses that arise from the adjustment of assumptions or the application of actuarial models differently over time in evaluating a company's pension liabilities.

Projected Benefit Obligation

Represents an estimate of the total amount to be paid to participants in a defined benefit pension plan, based on employees' service and salary history.

Prior Service Cost

The cost associated with retroactive benefits granted in a pension plan amendment, recognized over the service lives of affected employees.

Plan Assets

Assets that are specifically earmarked to pay pension benefits, typically held in a pension fund.