What methods do companies use to overstate revenues?

Posted on Monday, December 14th, 2009 at 4:22 am    

Many companies have an incentive to overstate revenue. By overstating their revenue, they are able to boost their net income, which often leads to increase in stock prices and potential capital investments.

However, overstating revenue is almost always an act of fraud. This act of fraud is often accomplished by reporting revenue for services not performed and recording transactions that never actually existed. 

If your company has been mislead by another company's revenue fraud, contact the Des Moines business lawyers of LaMarca Law Group, P.C., at (877) 327-2600. 


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