The concept of "two sets of books" refers to the practice of attempting to hide or disguise certain financial transactions from outsiders by having a set of fraudulent accounting records (or "books") for official use and another, the real set, for personal records.
Keeping two sets of books has its disadvantages and advantages. The concept of having two sets of books is so public traded companies can prepare the financial statements for the Securities and Exchange Commission, investors, and sometimes the IRS. This is considered an advantage because it shows the investors that they are a rich company. Therefore they can get more shareholders to buy their stocks. The disadvantage with these companies for having two sets of books is when they report one or both of the books to the Internal Revenue Service, they tend to lower their income to avoid taxes.
See also
edit- Securities and Exchange Commission
- Investors
- Internal Revenue Service
- Financial Statements
- Tax evasion
- Accounting ethicsThere is nothing wrong about the article. There is not much information. There's no citations and it only has one long sentence. There's also no citations so there is no wrong citations.
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