USA Finance leases

[apanjabi]

If a construction machinery company (e.g. Caterpillar) has a finance leasing arm, (e.g. Caterpillar Finance), can a sale be recorded in the P&L of the first entity if a piece of machinery is sold from the first entity to the second, even if the latter does not have a known buyer?

Trying to understand how easy it would be for a construction machinery company to inflate sales by simply dumping machinery on to its in-house financing arm.

Thanks.

 

[kirby]

That is exactly why accountants use consolidating (or eliminating) entries - to avoid counting sales to yourself.