question archive 1)Assuming the bills received for actual line costs were of a dollar value that was larger than the amount remaining (assume something still remains) in the previously recorded accrual for future line costs (after the inappropriate reversals were recorded), provide the journal entry that WorldCom would have recorded at the time of payment of those bills (once again using generic, yet descriptive, account titles)
1)Assuming the bills received for actual line costs were of a dollar value that was larger than the amount remaining (assume something still remains) in the previously recorded accrual for future line costs (after the inappropriate reversals were recorded), provide the journal entry that WorldCom would have recorded at the time of payment of those bills (once again using generic, yet descriptive, account titles)
Subject:AccountingPrice: Bought3
1)Assuming the bills received for actual line costs were of a dollar value that was larger than the amount remaining (assume something still remains) in the previously recorded accrual for future line costs (after the inappropriate reversals were recorded), provide the journal entry that WorldCom would have recorded at the time of payment of those bills (once again using generic, yet descriptive, account titles). In parentheses, after the account name, please identify the financial statement category (A, L, SE, R, or E) to which each account belongs
2)What basic, fundamental principle of accounting was MOST LIKELY violated by WorldCom through their process of reversing previously recorded accruals for expected future line costs?
3)One of the other significant ways that WorldCom misstated their earnings as part of this fraud was through the capitalization of excess network capacity. Provide the journal entry that WorldCom would have recorded to capitalize this excess network capacity. In parentheses, after the account name, please identify the financial statement category (A, L, SE, R, or E) to which each account belongs.
4)Using generic, yet descriptive, account titles provide the journal entry that WorldCom should have recorded to appropriately account for this excess network capacity.n parentheses, after the account name, please identify the financial statement category (A, L, SE, R, or E) to which each account belongs.
5)a. Describe the financial statement impact the capitalization of excess network capacity had on WorldCom's records in contrast to how they would have been impacted had the excess capacity been accounted for appropriately.
6)describe the nature of the control environment at WorldCom during the time period over which the fraud was perpetrated.
7), what were the most likely reasons why Bernie Ebbers and Scott Sullivan intentionally "cooked the books"?
8)What punishments(s), if any, did Arthur Andersen receive for its role in the WorldCom fraud? What was (were) the underlying reason(s) for what did or didn't befall Arthur Andersen as part of their role in the WorldCom fraud?
