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627:" refers to the practice of keeping two sets of accounting ledgers ("books"). In colloquial terms, this practice may refer to fraudulent behavior, i.e. attempting to hide or disguise financial transactions from outsiders by having a falsified set of records for official use and another for internal recordkeeping. It may be done for legitimate reasons as well.
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Having two sets of books enables a company to use one set for tax authorities and another for investors. The goal is to maximize income for financial statements in one set while showing lower income on the other set in order to avoid paying higher taxes.
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Keeping "two sets of books" does not always refer to an illegal practice.
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might maintain two sets of accounting records while still abiding by the
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721:"Is it OK to Keep Two Sets of Books? A Primer on Deferred Tax Assets"
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652:(FASB) rules for preparing financial statements and the
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Keeping multiple accounting records for different uses
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719:Connolly, Timothy P. (2 October 2012).
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754:This accounting-related article is a
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367:Notes to the financial statements
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315:Management Accounting Principles
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290:Generally-accepted principles
758:. You can help Knowledge by
656:when preparing tax returns.
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159:Constant purchasing power
56:Constant purchasing power
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616:Not to be confused with
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478:People and organizations
238:Amortization (business)
654:Internal Revenue Code
362:Management discussion
329:Financial statements
282:Accounting standards
676:Creative accounting
555:Earnings management
525:Positive accounting
399:Double-entry system
389:Bank reconciliation
194:Revenue recognition
805:Accounting systems
530:Sarbanes–Oxley Act
465:Sarbanes–Oxley Act
394:Debits and credits
229:Cost of goods sold
184:Matching principle
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495:Luca Pacioli
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234:Depreciation
142:Key concepts
114:Governmental
666:Tax evasion
508:Development
485:Accountants
381:Bookkeeping
300:Convergence
258:Liabilities
189:Materiality
77:Major types
799:Categories
730:29 January
705:2016-10-28
682:References
543:Misconduct
169:Fair value
119:Management
61:Management
32:Accounting
565:Hollywood
445:Financial
347:Cash-flow
104:Financial
660:See also
550:Creative
520:Research
450:Internal
437:Auditing
253:Goodwill
248:Expenses
99:Forensic
24:a series
22:Part of
515:History
409:Journal
268:Revenue
154:Accrual
460:Report
414:Ledger
357:Income
352:Equity
263:Profit
243:Equity
219:Assets
124:Social
89:Budget
631:Fraud
455:Firms
84:Audit
756:stub
732:2023
224:Cash
109:Fund
94:Cost
129:Tax
66:Tax
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