Cooking the Books: Techniques to Sweeten the Balance Sheet

C. Improperly increased or shifted period income.

D. Improperly increased assets and equity.

C.  Improperly increased or shifted period income

C1.  Current expenses shifted into later period

• C1a.  Improperly capitalized costs as inventory.
• C1b.  Assets depreciated or amortized too slowly.
• C1c.  Worthless asset not written off immediately.

C2.  Shift revenue and income into later periods with reserves.

D.  Improperly increased assets and equity.

D1.  Increased equity through one-time gains

• D1a.  Report gains on exchange of similar assets
• D1b.  Report gains by selling undervalued assets
• D1c.  Retire debt.

D2.  Report revenue rather than liability on receipt of cash.

"Cooking the books" means intentionally hiding or distorting the real financial performance or actual financial condition of a company.

Related:

• Cooking the Books: Why do managers cook the books?
• Cooking the Books: This is very different from "Creative Accounting"
• Cooking the Books: Puffing up the Income Statement
• Cooking the Books: Techniques to Puff Up the Income Statement
• Cooking the Books: Sweetening the Balance Sheet
• Cooking the Books: Techniques to Sweeten the Balance Sheet
• Cooking the Books: The Auditor's Job
• Cooking the Books: Investors, be warned.