What Is Falsified Accounting in a Business?

When you enter into a business with partners, there is an implied trust that each one involved in the company will operate with honesty and integrity. Unfortunately, there are situations where a partner will engage in falsified accounting.

Falsified accounting, also known as creative accounting or accounting fraud, refers to the deliberate manipulation or misrepresentation of financial information to make a company's financial performance appear better than it actually is.

What Are Some Examples of Falsified Accounting?

One of the most common ways that companies engage in falsified accounting is by inflating their revenues or understating their expenses.