Question

what did worldcom do to try to keep its stock price from falling?

a. it falsified accounting entries to make the company appear profitable.

b. it took out loans but did not report them on the company’s books.

c. it created innovative energy trading methods to increase revenue.

d. it forced employees to buy company stock.

Explanation:

WorldCom was involved in one of the largest accounting scandals. To keep its stock price up, it manipulated its financial statements. Falsifying accounting entries (like capitalizing expenses as assets) made the company look more profitable than it was. Option B is not the main way WorldCom manipulated; option C is more related to Enron (energy - trading scandal); option D is not a common or main method in the WorldCom case.

Answer:

A. It falsified accounting entries to make the company appear profitable.