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Financial shenanigans - Coggle Diagram
Financial shenanigans
earning manipulation shenanigans
1) recording revenue too soon
2) recording bogus revenue
3) boosting income using one time or unsustainable activities
4) shifting current expense to later period
5) employ other technique to hide expenses and losses
6) shifting current income to later period
7) shifting future expense to current period
cash flow shenanigans
1) shifting financing cash to operating section
2) moving operating cash outflow to other section
3) operating cash flow using unsustainable activity
acquisiton accounting shenanigans
1) boosting revenue and earnings artificially
2) inflating reported cash flow
3) manipulating key metrics
financial reporting has three distinct “branches"
balance sheets
income statements
statement of cash flow
When one of these financial statements contains shenanigans, warning signs generally appear on the other ones
key metrics shenanigans
1) showcasing misleading metrics, overstating performance
2) distorting balance sheet
real life example
Hertz
Toshiba