Manufacturing profits" is referred to as "creative accounting" or earnings management. How can the directors' go about "manufacturing profits" without actually improving the real profitability of the company? Which figures in the accounts would you try to change in order to increase your reported profit without actually changing what has really happened to the business.

Answer rating: 100% (QA)

Directors can engage in manufacturing profits or earnings management by manipulating certain figures in the companys accounts to increase reported pro... View the full answer