[Idiom] COOK THE BOOKS. - Learn How to Spot Financial Falsifications Easily

To falsify financial records.

The phrase "cook the books" might conjure images of someone in a kitchen, but in the financial world, it has nothing to do with actual cooking. This idiom refers to the practice of altering financial records to appear more profitable or financially stable than they truly are. Typically done to deceive shareholders, tax authorities, or other stakeholders, cooking the books can involve inflating revenue numbers, concealing debts, or manipulating expenses. Understanding this term is crucial for anyone involved in finance, as recognizing such discrepancies can protect against fraud and promote transparency in business practices.

Example Sentences

1. The evidence suggested that someone had cooked the books.

   It was indicated that financial records had been illegally altered.

2. She got fired after her boss discovered she had been cooking the books.

   Her termination occurred because she was discovered to have manipulated financial records illegally.

3. Over the years, it became clear that the accountant had cooked the books to hide losses.

   The accountant had been altering financial records over years to conceal financial losses.