What method do fraudsters commonly use to make companies appear more profitable by concealing financial details?

Fraudsters often employ a combination of tactics to manipulate financial statements and create a misleading picture of a company's profitability. The correct answer indicates that all the listed methods are commonly used in various scenarios of financial fraud.

Failing to disclose warranty costs can obscure potential future liabilities, thus making the company's current income appear higher than it actually is. By not accounting for these anticipated costs, the company may present a more favorable financial position to investors and stakeholders.

Omitting liabilities or expenses directly affects the bottom line by inflating net income. By hiding certain liabilities, the financial statements may not accurately reflect the company’s obligations, leading to a distorted view of financial health.

Improperly capitalizing costs instead of expensing them can also artificially enhance profitability. When costs are capitalized, they are recorded as assets rather than immediate expenses, which spreads the cost over time and boosts current profits.

Combining these methods maximizes the ability to obscure true financial performance. Hence, all the aforementioned actions are tactics often employed by fraudsters to create the illusion of enhanced profitability, making the answer comprehensive in highlighting the various strategies used in financial fraud.