Which of the Following Is an Example of a Related

Multiple Choice

Which of the following is an example of a related party transaction?

A) An action is taken by the directors of Company A to provide additional compensation for vice presidents in charge of the principal business functions of Company A.
B) A long-term agreement is made by Company A to provide merchandise or services to Company B, a long-time, friendly competitor.
C) A short-term loan is granted to Company A by a bank that has a depositor who is a member of the board of directors of Company A.
D) A nonmonetary exchange occurs whereby Company A exchanges property for similar property owned by Company B, an unconsolidated subsidiary of Company A.