Question

What is creative accounting? to. Euphemism to refer to the makeup of financial statements to commit...

What is creative accounting?
to.
Euphemism to refer to the makeup of financial statements to commit fraud
b.
New practices in accounting and finance to better keep financial books
c.
Be innovative in how to save and follow good accounting practices in the company
d.
Use creativity and ingenuity in the expression of financial information
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Answer #1

A: Euphemism to refer to the makeup of financial statements to commit fraud

Creative accounting refers to the usage of loopholes in the law to paint a better and rosier picture of the financial position of the company to the stakeholders. It is a manner of committing fraud since it shows an exaggerated and more impressive picture which is false.

b: Creative accounting does not change the accounting practices.

c. It refers to being innovative but need not follow good practices.

d. It refers to the use of loopholes rather than creativity.

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