"Cooking the books" is typically accomplished by all the following except
A) inflating accounts payable.
B) accelerating recognition of revenue.
C) delaying recording of expenses.
D) overstating inventory.

Question

Quizplus · Accepted Answer

"Cooking the books" is a term used to describe the fraudulent manipulation of financial statements. Inflating accounts payable would not be a method used for cooking the books as it would actually decrease the appearance of profitability. The other choices, accelerating recognition of revenue, delaying recording of expenses, and overstating inventory, all artificially inflate profits and can be used to cook the books.

"Cooking the Books" Is Typically Accomplished by All the Following