1. What is the difference between accrual earnings and cash earnings? In addition to the effect on accrual earnings of capitalizing the line costs, how might the treatment mask the true nature of operating cash flows? 2. Identify the stake holders in the World Comcase and how their interests were affected by the financial fraud. 3. Use ethical reasoning to compare the actions of Cynthia Cooper in the World Comcase to those of Sherron Watkins in the Enron case, discussed earlier in this chapter.
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