Term of the Day: Voodoo Accounting

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	INVESTOPEDIA Term Of The Day October 28, 2015 Voodoo Accounting Creative rather than conservative accounting practices. Voodoo accounting employs numerous accounting gimmicks to artificially boost the bottom line by inflating revenue or concealing expenses or both. The origin of the term "voodoo accounting" probably lies in the fact that once the accounting gimmicks come to light, the purported profits disappear like magic. Investor reaction to news that a company has been engaged in voodoo accounting depends on the magnitude of the offense. While minor, one-time accounting gimmicks may be ignored by investors, substantial repeat offenses would affect the company's market value and reputation. Breaking It Down: Some of the voodoo accounting practices identified by former SEC chairman Arthur Levitt at the height of... Read More Related to "Voodoo Accounting" Top 8 Ways Companies Cook The Books Every company maneuvers the numbers to a certain extent to achieve budgets and... Read More The Pioneers Of Financial Fraud A true history of fraud would have to stdart in 300 B.C., when a Greek merchant name Hegestratos took out.. Read More Detecting Financial Statement Fraud Looking back at Enron, perhaps the company best known for committing accounting fraud... Read More Recently Added Definitions International Monetary Fund - IMF The International Monetary Fund (IMF) is an international organization created for the purpose of... Read More Implied Volatility - IV Implied volatility is the estimated volatility of a security's price. In general, implied volatility increases when... Read More Related Definitions Cookie Jar Accounting Financial Shenanigans Cook The Books Big Bath Walk-Through Test Past Terms of the Day Witching Hour Ghosting Zombies Phantom Stock Plan Dwarf You are currently subscribed as: mondemand.forex@blogger.com Unsubscribe | Manage Subscriptions Investopedia US, A Division of IAC. Copyright © 2015, Investopedia, LLC. All Rights Reserved Follow Us: