Response to the following questions:
1. Define a non-interest-bearing note that is discounted at a bank at a specific rate. How are the proceeds computed for a non-interest-bearing note?
2. What are compensated absences? How does a company account for them?
3. GAAP requires that a company selling inventory and agreeing to repurchase it later neither record the transaction as a sale nor remove the inventory from the balance sheet. If so, does a new current liability arise? How is its amount measured?
If possible, please give examples to better understand your response.