Introduction This report will cover the meaning of financial ethics, what types of accounting practices are considered unethical, and how a company can overcome the problems. Furthermore, this report talks about the use of EBITDA in accounting practices and how EBITDA can be manipulated to show that a company's performance is good when in reality they are suffering. The report will also show how EBITDA and financial ethics can be intertwined with each other. FINANCIAL ETHICS Financial ethics is a form of business ethics but with more emphasis on the financial end of the business. To be a reliable person in this field you need to refrain from bad accounting practices such as aggressive bookkeeping. Aggressive accounting is where numbers are changed to make investors/shareholders feel comfortable with their investment. An aggressive account also inflates stock prices by using false data to report revenue, not reporting all expenses incurred within the company, hiding losses incurred by the company, and overall, not reporting an accurate financial statement to increase or stabilize the share price and satisfy investors. This type of accounting practice is unethical and is an outright lie to investors and/or shareholders. This type of accounting fraud involves one or more employees or an entire accounting division changing, deleting or ruining accounts so that the true information about these accounts is not revealed to shareholders. Why would a company do this type of illegal accounting? Businesses do this to show that they are doing well to get a higher credit limit with a bank or financial institution that makes higher loan amounts available. Another reason is to increase the share price... middle of paper... the owners/investors show good assets, but the company itself may be poor in liquidity. Companies with no or reduced cash flows are companies that are in financial difficulty, which again, if not accurately communicated to investors and shareholders, can be misleading. This is why there should always be ethics in reporting finances to investors and shareholders so that they are aware of any problems the company may be experiencing, and hiding these problems is unethical. Healthcare companies and industries are responsible for accurately reporting debt revenues and expenses to all investors and shareholders, regardless of whether it shows a negative impact on society. Ethical reporting is mandatory to keep companies honest and investors well informed. EBITDA should not be used to cover up any bad investments or lack of cash flow, but should be used to report honest information.