Window dressing normally applies to the practice of bolstering the current asset ratio to make it appear stronger than it should be normally.

Some ways to window dress:

• deliberately defer purchasing much-need capital expenditure until after balance sheet date,
• allows stock to fall below normal level at balance sheet date
• postponing purchases,
• putting pressure on customers to pay their debts,
• deliberately omit supplier invoices although goods being billed to customers,
• stocks being deliberately over stated vide physical count and costing.

Due to the artificially depression of stock or debtors and creditors level, the stock , debtors turnover rates and overall current asset ratio will be lower than what it should be.

However, it is difficult for outsiders who analyze the financial statement to be able to spot window dressing.

Please note that there is another common notion for window dressing is when at balance date, the management deliberately pushes up its share prices so as to improve its ranking in share market capitalization