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In this session, we discuss repurchase agreements (repos), which are essentially financial transactions. A repo involves one party selling an asset, such as inventory, for cash (e.g., $100), with an agreement to buy it back later for a higher price (e.g., $106). While it appears as a sale, it functions as a borrowing mechanism, allowing the seller to receive cash while retaining an obligation to repurchase the asset. Understanding repo agreements is crucial for revenue recognition, as it impacts how companies report their financial activities and obligations.