The objective of this paper is to identify the main creative accounting options and to examine the concept of ,,creative accounting versus bad accounting”. To investigate the issue, the authors examined several definitions of the term, presented the main creative techniques and tried to analyze the impact of these operations. Creative accounting does not mean necessarily breach accounting rules and regulations, but it can be done well within the law. Creative accounting may serve different purposes depending on the interests that the enterprise management has, it is facilitated by gaps in accounting rules or sometimes accountants are oriented towards certain professional subjective judgments by the accounting norms.