What is Window dressing in Finance

  • This refers to the phenomenon wherein companies engage in accounting and other business practices that help them in projecting a better picture of their financial performance during a period.
  • The most common way in which companies engage in window dressing is by fiddling with the accounting rules in order to bring about the premature or delayed recognition of revenues and expenses, respectively, in the income statement.
  • They may also employ practices that help in hiding their true liabilities.


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