Voodoo Accounting
Any form of accounting that does not follow principles of conservatism. While there are many methods by which financial statements can be fudged, it always comes down to inflating revenue or hiding expenses. Examples of accounting shenanigans include the big bath, cookie jar accounting and improper recognition of revenue. Investopedia Says:
Any method that boosts profitability through accounting tricks eventually catches up with the company. As soon as it does "poof", past profits disappear like magic. (Hence the name "voodoo accounting"). Related Terms:
Accounting
Andersen Effect
Big Bath
Cook The Books
Cookie Jar Accounting
Internal Controls
Restatement
The Beneish Model
Wildcatting |