Tags :Balance Sheet Fraud

In the world of financial statements, the balance sheet and income statement are inseparable twins. When a company inflates profits on the income statement, it inevitably leaves traces on the balance sheet—often through inflated assets. Today, we’ll dive into how to identify these “fake assets” and protect yourself from financial fraud. 1. Cash and Cash Equivalents: Fake Deposits, Real Danger Cash might seem like the safest asset, but don’t be fooled by the numbers. Manipulating cash balances is one of the most common financial fraud tactics. Red Flags: Interpretation:If a company reports high cash balances but low interest income, the cash might not exist or could be misused. Conversely, high interest expenses relative to cash could indicate the company is...

Like(0)SinoLoanExpert2025-03-26Banking Advisors Accounts ReceivableBalance Sheet FraudDetecting Financial FraudFake AssetsFinancial Red FlagsFinancial Statement AnalysisFixed Asset FraudGoodwill FraudInventory FraudInvestment RiskViews()