The Smartest Guys in the Room It was a profound story happened between two giant companies‚ both of which once marked as one of the greatest companies for decades in the American History. Enron‚ started as Northern natural Gas Company in 1930‚ creatively making its way through the Great Depression by opening up the natural gas market with its lower cost and developing extensive pipeline network with the unlimited low-cost labor resource‚ fell apart due to its creative use of the SPEs and related
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In 1998‚ Betty Vinson was promoted to a senior manager in the firm’s corporate accounting division. Two years later in her position she experienced a major ethical dilemma. The company WorldCom was a very successful company up until the middle of 2000 when the telecommunication industry entered a protracted slump. The company’s earnings were not Wall Street expectations‚ and it was saddled with unpaid bills. Vinson’s job was to repair the problem by doing some wrong accounting practices. The ethical
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instinct‚ she warned him about the upcoming peril‚ but she was only a woman and he was Caesar‚ therefore he didn’t listen to her. Murder‚ death‚ chaos‚ and war could have all been stopped‚ only if Caesar would stand firm and stand back from his principles. Calphurnia was a minor character whose judgments‚ if listened to by Caesar‚ could have changed the entire course of the play. Calphurnia’s dream was very detailed and insightful. Caesar did give some attention to it before Decius changed the way
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Creative accounting refers to accounting practices that seem to follow the letter of the applicable accounting standards but deviate from the spirit of those standards. It is the use of accounting methods to hide aspects of a company’s financial dealings in order to make the company appear more or less successful than it is in reality. In other words‚ Creative accounting is the transformation of financial accounting figures from what they actually are to what preparers desire by taking advantage
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Wan-Ting Shao * Ananya Chandra * Niteesh Chinta * Shraddha Rane * Swathi Punreddy The Rise and fall of WorldCom This case study WorldCom is a telecommunications company which was led by CEO‚ Bernard Ebbers‚ and CFO‚ Scott Sullivan. In 1999‚ WorldCom was not meeting Wall Street’s revenue and earnings expectations‚ and it appeared that the coming year would produce more bad news. The CFO argued for setting realistic targets.
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WorldCom Sunday‚ November 07‚ 2010 10:27 PM The following entries are hypothetical and intended to illustrate the initial recording‚ and subsequent ‘release’ and ‘capitalization’ of line costs. a. Prepare a journal entry to record $3‚500 million of estimated line costs for quarter 1. DR - Accrued Line cost $3‚500 CR - Cash and Cash Equivalents $3‚500 b. Assume that you find out in quarter 2 that the prior quarter’s estimate was too large by $100 million. Prepare the necessary journal entry
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April 2013 “Can Teen Pregnancy be Prevented?” Nationwide‚ 50% of high school students have had sexual intercourse. Approximately 25% of adolescent females report using no contraceptive method at the time of first intercourse (Pollack 1). Even though sex education is almost universal in U.S. schools‚ its content varies and is very basic. In order to prevent rising teen pregnancy rates communities should allow more sex education in schools‚ teens should also have easier access to contraceptives‚ “Well
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1. The Enron debacle created what one public official reported was a “crisis of confidence” on the part of the public in the accounting profession. List the parties who you believe are most responsible for that crisis. Briefly justify each of your choices. a. Kenneth Lay‚ Jeffrey Skilling‚ and Andrew Fastow. A common theme of the allegations leveled at the three executives was that they had created a corporate culture that fostered‚ if not encouraged‚ “rule breaking”. b. Andersen
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8 months before the story the Curtis brothers parents died in a car crash. They could’ve been Socs before it happened or maybe they were Greasers. Why’d they have to join a gang of Greasers? Could they have joined the Socs instead? This is why Pony and his brothers joined the Greasers. They had to join the gang after their parents had died. When their parents were alive‚ why join a gang? They didn’t need to at the time while having nice parents to provide and be a family so they didn’t need a gang
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Accounting Fraud at WorldCom Vanessa Gail Woods Strayer University Connor-Green/ACC 576 March 21‚ 2010 Accounting Fraud at WorldCom The break up of AT&T opened the long distance service market to small companies during the mid- to late-1980s and 1990s. Long Distance Discount Service (LDDS) opened in 1983 with moderate growth until its stock went public in 1989. CEO Bernie Ebbers decided to grow the organization through acquisitions (70 companies over the course of its lifetime)
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