WINDOW DRESSING

                                      WINDOW DRESSING 

 

          Window dressing is a technique used by companies and financial managers to manipulate financial statements and reports to show more favorable results for a period. They try to make better performance in current period through recording forthcoming period transactions which are not included in the current period. Its totally unethical. Normally these type of companies are preparing window dressing fraud during the end of an accounting period. 

There are some examples for window dressing :-

1) Cash window dressing :- it is an example for window dressing , they try to postpone paying to suppliers. Therefore their cash balance will increase.

2) Account receivables window dressing:- It is another type of window dressing. they record low debts to reduce the total expenditure.

3) Expense window dressing:- it is the process of withholding supplies invoice and record in later period. Through this kind of window dressing fraud their current period expenditure will be decreased.

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