WorldCom reclassified $3.85 billion of operating expenses as capital expenditures. Explain the effect this reclassification would have
Question:
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 61% (21 reviews)
By reclassifying 385 billion operating expenses as capital expenditures WorldCo...View the full answer
Answered By
Asim farooq
I have done MS finance and expertise in the field of Accounting, finance, cost accounting, security analysis and portfolio management and management, MS office is at my fingertips, I want my client to take advantage of my practical knowledge. I have been mentoring my client on a freelancer website from last two years, Currently I am working in Telecom company as a financial analyst and before that working as an accountant with Pepsi for one year. I also join a nonprofit organization as a finance assistant to my job duties are making payment to client after tax calculation, I have started my professional career from teaching I was teaching to a master's level student for two years in the evening.
My Expert Service
Financial accounting, Financial management, Cost accounting, Human resource management, Business communication and report writing. Financial accounting : • Journal entries • Financial statements including balance sheet, Profit & Loss account, Cash flow statement • Adjustment entries • Ratio analysis • Accounting concepts • Single entry accounting • Double entry accounting • Bills of exchange • Bank reconciliation statements Cost accounting : • Budgeting • Job order costing • Process costing • Cost of goods sold Financial management : • Capital budgeting • Net Present Value (NPV) • Internal Rate of Return (IRR) • Payback period • Discounted cash flows • Financial analysis • Capital assets pricing model • Simple interest, Compound interest & annuities
4.40+
65+ Reviews
86+ Question Solved
Related Book For
Question Posted:
Students also viewed these Corporate Finance questions
-
Explain why categorizing fixed asset expenditures as expenses or capital assets is important.
-
Capital projects provide both operating cash flows and financial cash flows. Why are operating cash flows preferred for domestic capital budgeting, but financial cash flows given major consideration...
-
How are operating expenses and capital expenditures treated differently when calculating incremental earnings?
-
Logical fallacies are frequently used in arguments and have an intuitive appeal that makes them effective for politicians to use. Using your understanding of fallacies, you will listen to and take...
-
A strip is a variation of a straddle involving two puts and one call. Construct a short strip using the August 170 options. Hold the position until the options expire. Determine the profits and graph...
-
A 25-ton (50,000-lb) truck coasts down a steep \(7 \%\) mountain grade without brakes, as shown in Fig. P9.72. The truck's ultimate steady-state speed, \(V\), is determined by a balance between...
-
The Bonferroni adjustment is made by multiplying the P-value by the number of___________________ . In Exercises 3 and 4, fill in each blank with the appropriate word or phrase.
-
What is a standardized normal curve?
-
Review the Competency 2 Resources: The Roles of Government in the Economy . Analyze 1 of the following government intervention programs: U.S. agriculture support programs Assistance for low Income...
-
A steel company is producing steel for a new contract. The contract specifies the information in the following table for the steel. The steel company mixes batches of eight different available...
-
Consider a retailing firm with a net profit margin of 3.5%, a total asset turnover of 1.8, total assets of $44 million, and a book value of equity of $18 million. a. What is the firms current ROE? b....
-
You have decided to take your daughter skiing in Utah. The best price you have been able to find for a round trip air ticket is $359. You notice that you have 20,000 frequent flier miles that are...
-
For each of the following, identify which kind of variation is at workrandom or assignableand explain your reasoning. a. During the noon hour, there is an electrical power disruption and nuts...
-
How do the different forces in the biopsychosocial framework contribute to the development of gender roles? What advice would you give to a mother who wants her daughter to grow to be gender-free in...
-
= (i) Let x = In(2) and y -0.6931457. Using 5-decimal digit rounding and normalized floating-point representation, compute the sum of xy, where denotes computer arith- metic addition with 6-decimal...
-
What do you think is meant by the statement IAS could mean a big change for hundreds of private UK firms, which will have to alter the way they account for areas of their business?
-
The email will need to detail your findings in the routine inspection and what steps will follow to assure Mr Landlord that his property will be monitored as required. You will also need to advise...
-
A company had the following cost data for the month of December 2022: Direct materials per unit $300 Direct labour per unit $200 Direct expenses $50 Budgeted production and sales for the period was...
-
Following are drawings of two derivatives of acetylene. Indicate whether each is polar or nonpolar, and explain your answer. (a) F-C=C-F (b) H-C=C-F
-
Revol Industries manufactures plastic bottles for the food industry. On average, Revol pays $76 per ton for its plastics. Revol's waste-disposal company has increased its waste-disposal charge to $57...
-
If wheel running is a higher-frequency operant, then wheel running will____________ drinking; if wheel running is a lower-frequency operant, then wheel running will __________ drinking. (a) decrease;...
-
Global expects sales to grow by 8% next year. Using the percent of sales method, forecast (see MyFinanceLab for the data in Excel format): a. Costs except depreciation b. Depreciation c. Net income...
-
Assume that Global pays out 50% of its net income. Use the percent of sales method to forecast stockholders equity (see MyFinanceLab for the data in Excel format). Use the following income statement...
-
What is the amount of net new financing needed for Global (see MyFinanceLab for the data in Excel format)?
-
Cullumber Industries produces and sells a cell phone-operated home security control systems. Information regarding the costs and sales during May 2022 is as follows. Unit selling price $55.00 Unit...
-
How does intersectionality challenge traditional sociological frameworks, and what implications does it have for analyzing systems of oppression ?
-
At January 1, 2024, Caf Med leased restaurant equipment from Crescent Corporation under a nine-year lease agreement. . The lease agreement specifies annual payments of $27,000 beginning January 1,...
Study smarter with the SolutionInn App