Topic: creative accounting a) What is the problem? b) How to solve the problem/issue/case?

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Accounting

Topic: creative accounting
a) What is the problem?
b) How to solve the problem/issue/case?

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Creative accounting consists of accounting practices that follow required laws and regulations but deviate from what those standards intend to accomplish Creative accounting capitalizes on loopholes in the accounting standards to falsely portray a better image of the company a Creative accounting tricks vary in nature and consistently evolve as regulations to police them change Here are some examples of common techniques Overestimating revenues One of the most common techniques used by public companies looking to artificially boost their income is to prematurely recognize revenue Revenue recognition is an accounting method that enables companies to recognize sales before they deliver a See Answer

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