There are many ways to falsify financial statements in fictitious business transactions. Here are some common methods: 1. **Revenue recognition manipulation**: Companies may recognize revenue in advance, such as recording sales revenue when the sales have not yet been completed, or generate artificial revenue through fictitious transactions. 2. **Hidden liabilities**: Hiding a company's actual liabilities by transferring debts to subsidiaries or partnerships, or using "special purpose entities" (SPEs) to circumvent accounting rules. 3. **Fictitious assets**: Listing assets that do not exist on financial statements, such as fictitious inventory or accounts receivable. 4. **Manipulation of accounting estimates**: Influencing profits through unreasonable accounting estimates (such as depreciation and amortization), for example, overvaluing intangible assets, thereby inflating the financial health shown on the balance sheet. 5. **Expense capitalization**: Expenditures that should be classified as expenses are incorrectly capitalized as long-term assets, delaying the recognition of expenses, thereby increasing current profits. 6. **Advance expense recognition**: Expenses that should be recognized in future periods are recorded in advance to reduce expenses in the current period, thereby inflating current profits. 7. **Related-party transactions**: fictitious transactions with related companies, transactions at non-market prices, affecting the revenue and costs in the financial statements. 8. **Adjusting the timing structure of financial reports**: For example, by rolling reporting periods, window dressing, etc., to present a more favorable financial situation at a specific point in time. 9. **Exploiting audit loopholes**: Some companies may exploit loopholes in the audit agreement or manipulate the audit process to make it difficult for auditors to discover the true situation in the financial statements. 10. **False documents and reports**: Making false contracts, invoices or other financial documents to support forged transactions and revenues. These means not only violate laws and regulations, but also cause serious harm to the long-term development of the enterprise. Once discovered, the individuals and companies involved may face legal liability and serious reputation loss.