Cook the books


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Cook the books

To deliberately falsify the financial statements of a company. This is an illegal practice.

Cook the Books

Informal; to falsify an accounting statement deliberately. Cooking the books usually involves overstating revenue and/or understating expenses. A person can use aggressive accounting to cook the books by using creative ways to make a company look healthier than it is. More directly, a person can simply lie on a financial statement. Cooking the books is illegal.

cook the books

To distort a firm's financial statements. For example, a manager may intentionally overstate sales or understate expenses in order to create high net income.

Cook the books.

When a company cooks the books, it is deliberately -- and illegally -- providing false information about its financial situation to bolster its stock price, often by overstating profits and hiding losses.

A company may also cook the books to reduce its tax liability, but then it stirs in the opposite direction by underreporting profits and overstating losses.

References in periodicals archive ?
US stocks lost ground in early trading yesterday after President Bush failed to calm down a scandal-weary Wall Street despite proposing stiff penalties for companies and executives who cook the books.
Good internal controls return power to senior management," he said, "making it harder for lower level officials to cook the books or misrepresent their performance.
But the Postal Service has been known to cook the books.
Mr Mallon said: "I do not go along with the theory that he is here to cook the books.
What little information the regionals did have came from the countries' own central banks, who often found it expedient to cook the books, or from the big banks, who themselves were flying blind.