Financial Reporting Requires That Firms Recognize Product Financing Arrangements as Liabilities

Multiple Choice

Financial reporting requires that firms recognize product financing arrangements as liabilities
If which of the following conditions is met?

A) The arrangement requires the sponsoring firm to purchase the inventory, substantially
Identical inventory, or processed goods of which the inventory is a component at specified prices.
B) The selling or sponsoring firm physically controls the inventory.
C) The payments made to the other entity cover all acquisition, holding, and financing
Costs.
D) Both A and C are correct.