______ involves selling unused assets for a promise to buy them or similar assets back at roughly the same price.
A)Bill-and-hold sales
B)Kiting
C)Channel stuffing
D)Round-tripping

Question

Quizplus · Accepted Answer

Round-tripping is a fraudulent accounting technique where a company sells unused assets to another company with a promise to buy them back at roughly the same price. This creates the appearance of revenue, without the company actually selling anything to a real customer. It is a form of falsifying accounts whereby apparent profits are created through the buying and selling back of an asset in a sham transaction.

______ Involves Selling Unused Assets for a Promise to Buy