Answers: 1: Part (a): Ways through which senior managers at WorldCom managed earnings: Scott Sullivan, the Chief Financial Officer of WorldCom, has distorted the earnings of the organisation by breaching two primary accounting rules, which include capitalisation and accruals. Moreover, the senior managers had overstated the pre-tax earnings of the organisation by disclosing the accrual balance to the profit and loss statement and by capital...Read More
Question: Discuss about the External Reporting Issues for Accounting Process. Answer: Introduction There are various aspects of the accounting process that need to be taken into consideration while making the balance sheet of a company. Without the presence of these facts, the financial reports of the companies will be affected. These issues should be treated carefully so that the financial statement of a company reflects ...Read More
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