What is an example of an improper asset valuation scheme?

An example of an improper asset valuation scheme is misclassifying operating expenses as capital expenses. This practice involves incorrectly categorizing regular operational costs, which should be expensed in the current period, as capital expenditures that can be spread over a longer time frame. Such misclassification inflates the asset values on the balance sheet, presenting a distorted view of the company's financial health and performance.

In contrast, recording revenues before services are rendered pertains more to revenue recognition issues rather than asset valuation. Keeping accurate records of assets is integral to maintaining proper financial reporting and does not constitute an improper scheme. Likewise, consistently aligning invoices with sales is a practice aimed at ensuring accurate revenue recognition and does not relate to the manipulation of asset values.