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In this session, we discuss repurchase agreements, commonly known as repo agreements. A repo involves one party selling an asset, like inventory, for a set amount (e.g., $100), and simultaneously agreeing to repurchase it later for a higher price (e.g., $106). This arrangement effectively acts as a loan, where the seller receives cash upfront but later repays more to regain the asset. The significance of repo agreements lies in revenue recognition, as it's crucial to determine whether a company is entering into such agreements or completing a straightforward sale. Understanding this distinction is important for financial reporting and analysis.