Research the Worldcom accounting scandal using the internet or other sources. Please provide as much relevant, detailed, and important information as possible in your answers.

1. Worldcom misled investors, lenders, and other stakeholders by not following proper Generally Accepted Accounting Principles. Describe the two primary ways the company increased net income by violating GAAP.

2. After the accounting improprieties were discovered, they resulted in serious consequences for several groups of stakeholders. Describe the penalties, punishment and/or other negative repercussions to the following stakeholders:

The company

Employees of the company

The companys key executives: CEO Bernard Ebbers and CFO Scott Sullivan

Shareholders who owned Worldcoms stock at the time the scandal was reported

3. In addition, Worldcom violated some of the accounting principles, assumptions and qualitative characteristics we discussed in class. Describe two of the other accounting principles, assumptions or qualitative characteristics that were violated.