ACT204 Financial Accounting Assignment 1

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Problem 4: The Statement of Cash flows

Read the article adopted from Carol Altman’s in Financial Accounting in the Real world 19.5 (on page 739 of your text book), ‘Cooking the books the Harris Scarfe way’, and then answer the following questions:
(a) What does ‘cook the books’ mean? 02
(b) How would a reader of financial statements know if the books had been cooked?04
(c) Is it likely that creative accounting was employed to the statement of cash flows? Why or why not? 04

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