what do you mean by window dressing in financial statement
Answers
Answer:
What Is Window Dressing? Window dressing is a strategy used by mutual fund and other portfolio managers to improve the appearance of a fund's performance before presenting it to clients or shareholders. ... These securities are then reported as part of the fund's holdings.
Explanation:
The Profit and loss account of Hanuman showed a net profit of 6,00,000, after considering the closing
stock of? 3,75,000 on 31st March, 2016. Subsequently the following information was obtained from
scrutiny of the books:
(1) Purchases for the year included ? 15,000 paid for new electric fittings for the shop.
(1) Hanuman gave away goods valued at 40,000 as free samples for which no entry was made in
the books of accounts.
(ii) Invoices for goods amounting to 2,50,000 have been entered on 27th March, 2016, but the
goods were not included in stock.
(iv) In March, 2016 goods of 2,00,000 sold and delivered were taken in the sales for April, 2016.
(v) Goods costing 75,000 were sent on sale or return in March, 2016 at