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Understanding Accounting Frauds (Part-2)

Checklist to understand Recording of Revenue in Financial Statement (Part-2) In continuation of my previous blog post... https://myweekendspot.blogspot.com/2020/01/catch-trend-its-all-about.html?m=1 Investors  rely  on  the  information  that  they  receive  from  corporate executives  to  make  informed  and  rational  securities  selection  decisions.  This  information  is  assumed  to  be  accurate,  whether  the news  is  good  or  bad.  While  most  corporate  executives  respect  investors  and  their  needs,  some  dishonest  ones  hurt  investors  by  misrepresenting  the  actual  company  performance  and  manipulating the  company’s  declared  earnings. Below mentioned are some of the shenanigans done by companies to attract investors and cheat them by manipulating numbers. All the below described pointers cover the frauds that take place due to manipulating Revenue line item in the financials of the companies. RECORDING REVENUE TOO SOON Techniques to Record Revenue