Techniques employed by firms to make their financial statements look better than they actually are, are called:
A)DuPont techniques.
B)window-dressing techniques.
C)trend analysis techniques.
D)benchmarking.
E)equity multipliers.

Question

Quizplus · Accepted Answer

Window-dressing techniques refer to strategies used by firms to manipulate the appearance of their financial statements to show better performance than they actually have. This can include things like delaying expenses or accelerating revenue recognition, all in an effort to make the financial statements look more attractive to investors and stakeholders. DuPont techniques, trend analysis techniques, benchmarking, and equity multipliers are all legitimate financial analysis tools, and are not specifically related to attempts to manipulate financial statements.

Techniques Employed by Firms to Make Their Financial Statements Look