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Definition of 'Aggressive Accounting'
The practice of inappropriately misconstruing income statements for the purpose of pleasing investors and inflating stock prices.
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Investopedia explains 'Aggressive Accounting'
Hiding losses within subsidiary companies, not capitalizing expenses, and accounting revenues are only some of the examples of "cooking the books." Aggressive accounting has been in the recent spotlight as companies are being caught attempting to increase revenue inappropriately.
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The theory and practice of these entities varies greatly. Investors need to learn what they're getting into.
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Find out more about the fraudulent accounting methods some companies use to fool investors.
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Learn what it means to do your homework on a company's performance and reporting practices before investing.
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