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Aggressive Accounting |
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Aggressive Accounting The practice of incorrectly recognizing revenue in order to please investors. Aggressive accounting seeks to falsely inflate stock prices by improperly reporting income, failing to capitalize expenses, hiding losses in subsidiaries, or otherwise misrepresenting the company's financial state. In the early 2000s, aggressive accounting came into focus in the United States when it was revealed that Enron and several other companies were using the practice. See also: Sarbanes-Oxley Act of 2002. How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content. |
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