Cook the Books

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Definition of 'Cook the Books'

Cooking the books is a fraudulent practice in which someone alters or creates false financial records in order to deceive others about the true financial status of a company or individual. This can be done for a variety of reasons, such as to inflate profits, hide losses, or make it appear that a company is more financially stable than it actually is.

There are many different ways to cook the books, but some of the most common methods include:

* **Falsifying or omitting income.** This can be done by recording fictitious sales, inflating prices, or failing to record expenses.
* **Manipulating expenses.** This can be done by underreporting expenses, writing off fictitious expenses, or creating false invoices.
* **Transferring funds between accounts.** This can be done to make it appear that a company has more cash on hand than it actually does.
* **Creating false documents.** This can include creating fake financial statements, invoices, or contracts.

Cooking the books is a serious crime that can have a number of negative consequences. For example, it can lead to investors losing money, employees being laid off, and companies going bankrupt. It can also damage a company's reputation and make it difficult for them to obtain loans or other financing in the future.

If you suspect that someone is cooking the books, you should report it to the authorities immediately. Cooking the books is a serious crime and should not be tolerated.

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