Black Box Accounting

Dictionary Says

Definition of 'Black Box Accounting'

The use of complex bookkeeping methodology in order to make interpreting financial statements time-consuming or difficult. Black box accounting is more likely to be used by companies seeking to hide information that they do not want investors to readily see, such as large amounts of debt, as the information would negatively affect the company's shares or ability to gain access to funding.

Investopedia Says

Investopedia explains 'Black Box Accounting'

Black box accounting is not illegal, as long as it adheres to GAAP or IAS guidelines, depending on the location. But is generally considered unethical, as it is designed to obscure a simple and accurate picture of a company's financial health. The use of complex formulas also creates skepticism about the accuracy of the numbers displayed in financial statements.

Search results for

'Black Box Accounting'

  • Upside Potential From Black Box

    http://stocks.investopedia.com/stock-analysis/2011/Upside-Potential-From-Black-Box-BBOX-ALU-SI-PLCM-SI-ACN-VZ0615.aspx
    ... gauge of corporate health, but it's not immune to accounting trickery ... Diversified
    Systems and Clients Black Box remains neutral over the communications systems ...
  • Using Technical Indicators To Develop Trading Strategies

    http://www.investopedia.com/articles/trading/11/indicators-and-strategies-explained.asp
    ... Traders do have the option to purchase "black box" trading systems, which
    are commercially available proprietary strategies. An ...
  • 5 Companies In The Black On Black Friday - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/1111/5-Companies-In-The-Black-On-Black-Friday.aspx
    ... the accounting term "in the black," which means that a company is earning a profit.
    In the past, Black Friday sales have largely been the domain of the big box ...
  • Sharpen Your Portfolio With Intelligent ETFs

    http://www.investopedia.com/articles/mutualfund/08/intelligent-etfs.asp
    ... The Style Box Quant Black Boxes An intelligent index is only as good as the "quant
    black box" that drives its component selections and rebalancing events. ...
  • Forex Automation Software For Hands-Free Trading

    http://www.investopedia.com/articles/forex/09/using-forex-automation-software.asp
    ... alike can learn the ins and outs of the retail forex market in Forex Tutorial: The
    Forex Market.) Known also as algorithmic trading, black-box trading, robo or ...
  • Your Futures Are In Good Hands With CTAs

    http://www.investopedia.com/articles/optioninvestor/07/CTA.asp
    ... While the programs were initially put together by actual people, these "black box"
    programs now trade the markets without any input from human emotions and ...
  • An Introduction To Value at Risk (VAR)

    http://www.investopedia.com/articles/04/092904.asp
    ... underlying methodology. For most users, a Monte Carlo simulation amounts
    to a "black box" generator of random outcomes. Without going ...
  • Quant Strategies - Are They For You?

    http://www.investopedia.com/articles/trading/09/quant-strategies.asp
    ... Disadvantages of Quant Strategies There are reasons why so many investors do not
    fully embrace the concept of letting a black box run their investments. ...
  • What is the best method of analysis for forex trading?

    http://www.investopedia.com/ask/answers/forex/best-method-of-forex-analysis.asp
    ... to share it. This is evidenced in how big financial firms keep their "black
    box" trading programs under lock and key. There is no ...
  • What types of accounts are available for forex trading?

    http://www.investopedia.com/ask/answers/forex/types-of-forex-accounts.asp
    ... This is why big financial firms keep their "black box" trading programs under lock
    and key. For more, see our Forex Market Tutorial. by Ayton MacEachern. ...

Related Articles

Partner Links