Or a company can engage in channel stuffing. It provides product dealer or end user, they really do not want, but business is a party to the transaction to provide incentives and special offers, if the dealer or the customer is not opposed to premature product.
A business may also delay recording products that have been returned to customers aware of these compensation to avoid sales this year
Accounting fraud is a deliberate and improper manipulation of the record sales revenue and / or expenses to the company's profit performance is worse than it actually is. There are things companies do so can constitute fraud are:
- Unlisted prepaid expenses or other incidental assets
- Does not display certain categories of current assets and / or liabilities
- Folding the short-and long-term debt amounted to 1.
Another way to corporate accounting fraud was committed under the record of expenses, such as not recording depreciation expense.
Or a company can choose not to record all of its cost of goods sold stand out in a period of sales. This will allow higher gross margin, but the company's inventory asset would include products that are actually not in stock, because they have been delivered to the customer.
An enterprise may choose not to record the loss of assets that should be recognized, so as not recoverable accounts receivable accounts, or do not write lower down inventory below cost or market rule. A company may not record the full amount of the cost of liability, so that responsibility underestimate the company's balance sheet. Its profits, it will be exaggerated.
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