The concept of 'Creative Accounting' in public finance refers to:
A. Accounting practices that improve the reported fiscal position without improving the underlying fiscal reality
B. Only the use of accrual accounting
C. Only the calculation of primary deficit
D. Transparent and accurate fiscal reporting
Answer: Option A
Solution (By JKSSB Mock Tests)
Creative accounting (or fiscal gimmickry) involves the use of accounting devices that temporarily improve reported deficit or debt figures without a corresponding improvement in the true intertemporal fiscal position.
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