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January 15, 2022
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January 15, 2022

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An accounting trick that involves the sale of unused or idle assets for a promise to buy them or their equivalents back at approximately the same price. After all, this brings about no economic benefits for either the buying or selling company. This fraud scheme usually aims to overstate or inflate revenues and net income.

This “barter” transaction is also known as round-tripping.

Compare: round-tripping (finance).

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