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:

Parenthood

The state or responsibilities of being a parent, including the care, education, and nurturing of children.

Developed Nations

Countries with advanced infrastructure, high living standards, and stable economies, typically characterized by high gross domestic product (GDP) per capita.

Hastening

The act of accelerating a process or event, making it occur more quickly.

Life Structure

A concept in adult development theory referring to the underlying pattern or design of a person's life at a given time, including roles, relationships, and activities.