Disclosure of Related Parties Is Essential in Financial Reporting Because

Multiple Choice

Disclosure of related parties is essential in financial reporting because:

A) related parties cannot be trusted;
B) there are certain limits imposed on entities in regards to how many related party transactions they could have;
C) related parties have the potential to affect an entity's profit or loss and financial position that might not otherwise occur;
D) a high number of corporate collapses are caused by related party transactions.