The major fraudulent accounting practice that contributed to the WorldCom Scandal was overstating the value of assets, leading to financial dishonesty and illegal activities within the company.
One of the major fraudulent accounting practices that contributed to the WorldCom Scandal was:
This practice involved inflating the reported value of assets, misleading investors and boosting share prices. Ultimately, this led to financial dishonesty and illegal activities within the company. An example of this was Sullivan booking $3.8 billion of costs as capital expenditures to manipulate profits.
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