Question
Accountancy Question on Financial Statements Analysis
Window dressing is a practice
A
To manipulate accounts to show a better picture of the financial position than the actual one
B
To show excessive depreciation
C
To avoid tax
D
To reduce tax
Answer
To manipulate accounts to show a better picture of the financial position than the actual one
Explanation
Solution
Window dressing is the practice of manipulating accounts to present a more favorable financial position.
Hence, the correct answer is Option 1.