Solved

Which of the Following Transactions Are Not Related Party Transactions

Question 2

Multiple Choice

Which of the following transactions are not related party transactions for an entity?
 I.  An employee purchased the entity’s  products on normal trading terms.  III.  A subsidiary of the entity supplied  raw materials to the entity.  II.  The entity made an agreement with a  trade union about increase in  employee’s wages.  IV.  The entity lent money to one of its  directors. \begin{array}{|l|l|l|l|}\hline \text { I. } & \begin{array}{l}\text { An employee purchased the entity's } \\\text { products on normal trading terms. }\end{array} & \text { III. } & \begin{array}{l}\text { A subsidiary of the entity supplied } \\\text { raw materials to the entity. }\end{array} \\\hline \text { II. } & \begin{array}{l}\text { The entity made an agreement with a } \\\text { trade union about increase in } \\\text { employee's wages. }\end{array} & \text { IV. } & \begin{array}{l}\text { The entity lent money to one of its } \\\text { directors. }\end{array} \\\hline\end{array}


A) I and II only;
B) I and III only;
C) II and IV only;
D) III and IV only.

Correct Answer:

verifed

Verified

Related Questions