Question

WorldCom reclassified $3.85 billion of operating expenses as capital expenditures. Explain the effect this reclassification would have on WorldCom’s cash flows. WorldCom’s actions were illegal and clearly designed to deceive investors. But if a firm could legitimately choose how to classify an expense for tax purposes, which choice is truly better for the firm’s investors?



$1.99
Sales0
Views259
Comments0
  • CreatedJuly 27, 2014
  • Files Included
Post your question
5000