Paper 2 · Ratio Analysis
State the term for presenting a company's financial statements in a way that makes its position or performance look better than it really is.
Model answer
window dressing
Also accepted: creative accounting
Explanation: Window dressing uses the timing and presentation of transactions, rather than outright falsification, to flatter the figures at the reporting date. Because it exploits choices the accounting rules permit, it can be legal and still leave the reader with a misleading impression.
Derived from ZIMSEC Business Enterprise Skills Paper 2, Specimen Paper, Q5