Not sure if it’s me not understanding correctly or is it the question not well formulated (Non-official qbank).
Company X sells product A to company Y. A month later, company X buys product A from company Y in an attempt to inflate revenues.
I don’t get how buying back the asset would specifically be an attempt to inflate revenues. I do get that the whole operation might inflate the revenue if the company reports the month prior to buying back the product, but specifically buying it back is not really an attempt to inflate revenue to me.
I think this not so well worded. Maybe i misunderstood something.
What you guys think?