GROUP – 7 (Shilpa Goyal, Ravi Kumar, Vishu Gupta, Rahul Sharma)
•The company worldcom engaged in acquisitions various companies .Due to these acquisitions, company grow quickly and these made the company stock price increase dramatically.
•Because of different accounting systems of acquired companies, world com financial record were a mess
•The company accountant engaged in number of fraudulent activities to make net income look better.
•They were treating $7 billion of line cost as capital expenses rather than expenses and this helped them to show more revenue in financial statements, its mean they were showing more revenues and more profits as compare to actual in financial statements.