Firms can engage in window dressing.. Please explain why each one of them can make the firms' financial statements look more attractive.

 

1. Change asset depreciation to a different depreciation method
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3. Short term borrowing
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5. Engaging in sales and leaseback transactions at the end of the year
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7. Sell underperforming stock and replace it with well-performing stock at the end of the year.
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9. Overstating assets
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11. Understating income
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13. Postpone payments
14. 
    
15. Offer customer discounts
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17. Defer supplier expenses
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19. Sell off fixed assets with substantial depreciation

Answer rating: 100% (QA)

Window dressing in financial statements refers to the practice of making a companys financial statements look more attractive or favorable than they might otherwise be This is often done to present a ... View the full answer