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creative accounting

 - 2 dictionary results
Main Entry:  creative accounting
Part of Speech:  n
Definition:  any financial practices which are imaginative and misleading but not necessarily illegal; any accounting practices which deviate from standard procedure
Usage:  slang
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Financial Dictionary

creative accounting

The use of aggressive and/or questionable accounting techniques in order to produce a desired result, generally high earnings per share. Creative accounting may include selling assets with a low cost basis, shipping unusually large quantities of product near the end of the year, and failure to write down inventories that have declined in value.

Wall Street Words: An A to Z Guide to Investment Terms by David L. Scott.
Copyright © 2003. Published by Houghton Mifflin.
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