what does cooking the books mean in a financial context

In the realm of finance and accounting, “cooking the books” is a term that refers to the deliberate manipulation or misrepresentation of financial records to present a false picture of a company’s financial health or performance. This practice can take many forms, including inflating revenues, understating expenses, or hiding losses through creative accounting methods. Understanding this concept is crucial for anyone involved in financial analysis, as it highlights the importance of maintaining transparency and accuracy in financial reporting.