WorldCom's failure to report $3.8 billion of operating expenses is an example of:

Question

Quizplus · Accepted Answer

WorldCom's failure to report $3.8 billion of operating expenses was an attempt to increase the company's market value in an unethical way. By hiding such a large expense, the company was able to manipulate its financial statements and create a false impression of profitability, which would have led to a higher stock price and increased investor confidence. This ultimately led to the largest accounting scandal in history and the collapse of the company.

WorldCom's Failure to Report $3