Access over 20 million homework & study documents

E367 Operating Expense And Capital Investment.edited

Content type
User Generated
Subject
Accounting
Type
Homework
Rating
Showing Page:
1/6

Sign up to view the full document!

lock_open Sign Up
Showing Page:
2/6

Sign up to view the full document!

lock_open Sign Up
Showing Page:
3/6

Sign up to view the full document!

lock_open Sign Up
End of Preview - Want to read all 6 pages?
Access Now
Unformatted Attachment Preview
Running head: OPERATING EXPENSES AND CAPITAL INVESTMENT 1 Operating Expense and Capital Investment Name Institution Affiliation Date OPERATING EXPENSES AND CAPITAL INVESTMENT 2 Introduction Accounting ethics clearly outline the misleading financial statements as a fraud that would mislead other stakeholders in the economy such as the investors. Operating expenditures are incurred in the engagement of the activities that are not directly associated with the production of goods and services (Brooks, 2015). Capital investment on the other hands is funds that are reinvested into the organization with the purpose of expanding its objectives. In accounting capital investment results in an increase in capital assets while operating expenses reduces assets. The focus of the research is when a company should treat an item as an operating expense or as a capital investment focusing on the WorldCom Scandal in which the company was convicted of incorrectly recording its line costs in the financial statements in 2002. Misrepresentations in the financial statements are documented in the time of crisis to accommodate concealing sensitive information to the interested stakeholders, however, have long-term consequences. An overview of the WorldCom scandal WorldCom the second largest telecommunication company in the US on June 25, 2002, announced that its earnings for 2001 were overstated by more than $ 3.8 billion. The move attracted financial analysts being on top of accounting problems ...
Purchase document to see full attachment
User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.

Anonymous
Awesome! Perfect study aid.

Studypool
4.7
Trustpilot
4.5
Sitejabber
4.4

Similar Documents