WorldCom Classified $3

question 22

Multiple Choice

WorldCom classified $3.85 billion in operating expenses as long-term investments. How would this make WorldCom's financial statements more attractive to investors?

• A) by decreasing depreciation
• B) by reducing capital expenditures
• C) by raising its reported earnings
• D) by boosting its cash flows

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Definitions:

Crying

A natural emotional response involving the shedding of tears in response to an emotional state, pain, or a physical irritation of the eye.

Unfamiliar

Describes something or someone not known or recognized by a person.

Cognitive Development

The process of growth and change in intellectual/mental abilities such as thinking, reasoning, and understanding over the course of a person’s life.

Socio-Emotional

Pertaining to the interplay between social interactions and emotional responses, affecting an individual's development and well-being.