Betty Vinson improperly capitalized line costs at her boss's direction. Which company did she work for

Question

02-07-2021
Business

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Betty Vinson improperly capitalized line costs at her boss's direction. Which company did she work for

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Parrain Parrain · Answer 1 · 2021-07-05T04:46:59+02:00

Answer: WorldCom

Explanation:

The WorldCom scandal of 2002 was the worst one in U.S. history and led to shareholders losing over $30 billion as a result of share prices falling drastically when it was revealed that the company had been making fraudulent accounting entries to look successful when it fact it had been losing money.

Betty Vinson was the company's Director of Corporate Reporting and her boss, CEO Bernie Ebbers, pressured her into making fraudulent entries because it was said that he "didn't want to disappoint Wall Street". This scandal was one of those that directly led to the Sarbanes-Oxley Act being passed.