The Manipulation of Financial Statements to Inflate Profits and Investment: The Examples of WorldCom and Enron

Abstract: This is a 3 page paper discussing the methods of manipulation of financial statements companies have used to inflate profits. Within the last several years, large multi-billion corporations such as WorldCom and Enron have collapsed due to the misrepresentation of their profits. While misstating profits and earnings, the companies encouraged further investments but in fact were defrauding their investors because investments were made in the companies based on their manipulated financial reports. Manipulation of financial statements came through a variety of accounting methods which relied upon the complex

Filename: TJinflt1.rtf

Pages: 3

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Catagory: Money & Banking / Corporate Finance

Subcatagory: Accounting & Personal Finance

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