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Posted on Jun 16, 2024

WorldCom tried to maintain profit levels by treating revenue costs (over $3.8 billion) as capital expenditure. Explain what the impact would be if revenue costs

WorldCom tried to maintain profit levels by treating revenue costs (over $3.8 billion) as capital expenditure. Explain what the impact would be if revenue costs (such as repairs to plant and machinery) were to be treated as capital assets. What do you think the auditor should have done to discover such malpractice?

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