During the dot-com boom two major companies with excess data transmission lines in different areas arranged a

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During the dot-com boom two major companies with excess data transmission lines in different areas arranged a sale whereby company X transferred lines in city A to company Y which in return transferred its excess lines in city B to company X. No cash changed hands. The contract specified the agreed value of the assets transferred. Identify and explain the potential problems in accounting for such a transaction. Would it make any difference if cash had changed hands?

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Financial Accounting And Reporting

ISBN: 9781292399805

20th Edition

Authors: Barry Elliott, Jamie Elliott

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