Companies with balance sheets that

Companies with balance sheets that present the absolute debt level at the half year or year end, but are subject to seasonal debt inflation, may appear stronger financially than they actually are.

Income reports may also have some misleading elements. For example, a company might cut its prices before the end of the quarter to create the illusion of higher sales figures. Products might listed as shipped or received at the end of one year or the beginning of the next, depending on which will create the better figures.