🗓️ Idiom: Creative Accounting (n)
💬 Meaning
- Using accounting methods that follow the rules technically, but are intended to make a company’s financial situation look better than it actually is.
- Often involves stretching legal boundaries to manipulate figures in a misleading way.
🧠 Example Sentences
- The firm used creative accounting to hide its mounting debts from shareholders.
- Creative accounting allowed the startup to appear profitable during its first year.
- Auditors became suspicious when they noticed signs of creative accounting in the report.
🏛️ Origin
The term emerged in the mid-20th century and became widely known after several high-profile corporate scandals. It reflects the idea of “creativity” being applied to numbers, typically implying manipulation rather than innovation. Though legal in some cases, it often misleads stakeholders and dances with unethical practices.
📝 Practice Exercises
1. Fill in the blank:
The company used __________ accounting to boost its earnings on paper.
Answer
creative
2. Choose the correct meaning of “creative accounting”:
A) Honest and accurate bookkeeping
B) Falsifying data in an illegal way
C) Legal but misleading manipulation of financial information
Answer
C) Legal but misleading manipulation of financial information
3. Rewrite the sentence using the idiom:
“They used tricky methods to make their profits look higher than they were.” → Change the sentence using: creative accounting
Answer
They used creative accounting to make their profits look higher than they were.
ℹ️ Other Useful Pages
👉 Finance and Accounting Idioms
👉 Business English Idioms List
👉 Student Space
👉 Tutor Toolkit
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