Problem
A. In what ways are the inventory accounts of a retailing company different from those of a manufacturing company?
B. Why should inventories be included in a statement of financial position and the computation of net income
C. What is the difference between a perpetual inventory and a physical inventory. If a company maintains a perpetual inventory, should its physical inventory at any date be equal to the amount indicated by the perpetual inventory records? Why
D. What is a repurchase agreement (product financing) arrangement?
E. How should a product repurchase agreement be reported in the financial statements?