One primary method WorldCom used to inflate its profits was through improper accounting practices and fraudulent financial reporting. The company engaged in a systematic manipulation of its financial statements by classifying normal operating expenses as capital expenditures. Instead of properly expensing these costs, WorldCom capitalized them, meaning they were recorded as assets on the balance sheet and gradually depreciated over time. By doing so, WorldCom was able to spread out the expenses over multiple reporting periods, artificially boosting its profits and providing a misleading picture of the company's financial health. This practice allowed WorldCom to inflate its profits by billions of dollars, deceiving investors, regulators, and the public

What was one primary method WorldCom used to inflate its profits

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