Window Dressing Flashcards
(3 cards)
1
Q
Meaning of Window dressing
A
The act done to make a firm appear more financially sound than it actually is, is called as window dressing
2
Q
Why is Window dressing done ?
A
- To attract Investors
- To secure loans or credit
- To meet the regulatory requirement
- To boost Stock price
- To avoid negative perception
3
Q
How is Window dressing done ?
A
A) Timing of transactions
B) Overstating Assets
C) Understating Liabilities
D) Creative accounting
E) Cookie Jar accounting
