Intentionally overstating revenues and assets or understating expenses and liabilities is known as ________.
A)creative accounting
B)dangling
C)employee fraud
D)defalcation

Question

Quizplus · Accepted Answer

Intentionally overstating revenues and assets or understating expenses and liabilities is a practice known as creative accounting, where accountants manipulate financial statements to make a company's performance seem better than it actually is. This is sometimes referred to as "cooking the books." The other options, dangling, employee fraud, and defalcation, do not accurately describe this practice.

Intentionally Overstating Revenues and Assets or Understating Expenses and Liabilities