Significance of transaction to analyst

Reference no: EM13147112

From 1998 until the third quarter of fiscal 2000,WorldCom, Inc. did not write off numerous accounts of customers who were in default and unlikely to pay their bills. In the third quarter of 2000,WorldCom management, who had earlier refused to approve any writeoffs, told the accounting area to write off $405 million of accounts receivable. Wall Street analysts viewed this write-off as a one-time nonrecurring event.

Explain the significance of this transaction to an analyst.

Explain the consequences of poor quality reporting.

What has the U.S. government done to improve the quality of reporting after recent financial scandals, such as Enron?

Reference no: EM13147112

Questions Cloud

Explain pheromones are compounds secreted by the females : Pheromones are compounds secreted by the females of many insect species to attract males. One of these compounds contains 80.78 percent C, 13.56 percent H

Preferred stockholders entitled : What dividends are the preferred stockholders entitled to receive in the current year before any distribution is made to common stockholders?

Preparation of a consolidated statements : Prepare the elimination entries for the preparation of a consolidated statements workpaper on December 31, 2010 assuming the cost method.

Present value of a terminal investment : Calculate the Present Value of a terminal investment that has the following features. show all your work

Significance of transaction to analyst : Explain the significance of this transaction to an analyst. Explain the consequences of poor quality reporting. What has the U.S. government done to improve the quality of reporting after recent financial scandals, such as Enron?

Consolidated financial statements workpapers : Prepare, in general journal form, the workpaper entries relating to the intercompany sale of equipment that are necessary in the December 31, 2012 consolidated financial statements workpapers.

Dancing in a white disco jacket to music performed : Playing a young working class Brooklyn man, whose life was centered around spending Saturday night at the disco. A memorable scene in the movie has Travolta dancing in a white disco jacket to music performed by the BeeGees.

Determining opportunity cost of purchase of land : A business is considering a cash outlay of $500,000 for the purchase of land, which it could lease for $40,000 per year. If alternative investments are available which yield a 21% return, the opportunity cost of the purchase of the land is:

Explain what percent of the limestone by mass : Celsius the initial sample contained 0.0718 grams of calcium. What percent of the limestone by mass is CaCO3?

User Account

All Pages