The
term cooking the books is based in an old
secondary definition of the word cook, which is to present
something that has been altered in an underhanded way. By the mid-1800s the
term cooking the books had come into use to mean manipulating
financial records in order to deceive. Cooking the
Books is when a company fraudulently misrepresents the financial condition
of a company by providing false or misleading information. It
is illegal and punishable.
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| Cooking books |
A company is guilty of cooking the books when it knowingly
includes incorrect information on its financial statements -- manipulating
expenses and earnings to improve their earnings per share of stock. Cooking the
books means manipulating the financial records and accounting records of a
business in order to disguise losses or to disguise embezzlement. The
term cooking the books is based in an old secondary definition of the
word cook, which is to present something that has been altered in an
underhanded way.
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