An accounting practice or business policy designed to highlight the most profitable aspects of financial transactions or customer relationships while minimizing or excluding less profitable or loss-making elements.
Creative accounting involves the use of accounting practices and principles that adhere to the letter of the rules of standard accounting practices but deviate from the spirit of those rules. This kind of accounting presents company financial performance in an overly favorable light, often inflating profits and hiding liabilities.
The date on which an accounting period ends and the accounts of a business are ruled off. It ensures the accuracy and integrity of financial statements, providing a true and fair view of the business's performance and position.
Repo 105 is an accounting maneuver used by Lehman Brothers to temporarily reduce the appearance of its leverage before reporting financial results.
Window dressing refers to any practice aiming to make a financial situation appear more favorable than it really is, often used by accountants to enhance the look of balance sheets.
