Get an AnswerSERVICE LEARNINGSmart Writing ServicesOctober 25, 2017 7:53 amOctober 25, 2017Previous Article(b) The company also improperly transferred certain costs to its capital accounts; thereby WorldCom’s transfer of its costs to its capital accounts violated the established standards of generally accepted accounting principles (GAAP). As a result, WorldCom falsely portrayed itself as a profitable business during 2001 and the first quarter of 2002. WorldCom’s improper transfer of certain costs to its capital accounts was not disclosed to investors in a timely fashion, and misled investors about WorldCom’s reported earnings.Next ArticleAssignment 1 (a) WorldCom was a major global communications provider based at Clinton Mississippi, but operated in more than 65 countries. WorldCom engaged in schemes directed and approved by its senior management. The company disguised its true operating performance by using undisclosed and improper accounting that materially overstated its income before income taxes and minority interests by approximately $3.055 billion in 2001 and $797 million during the first quarter of 2002.
