Which of the Following Transactions Are Not Related Party Transactions

question 18

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.
II. A subsidiary of the entity supplied raw materials to the entity.
III. The entity lent money to one of its directors.
IV. The entity made an agreement with a trade union about increase in employee's wages.

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

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Definitions:

Two-tail Test

A statistical test that determines if there is a significant difference between the means or proportions of two populations in either direction.

Sample Variances

The measure of dispersion of data points in a sample around their sample mean, serving as an estimate of the population variance.

Test Statistic

A value calculated from sample data during a hypothesis test. Used to determine whether to reject the null hypothesis.

Alpha Level

The threshold of probability set for rejecting the null hypothesis; a measure of the likelihood of a Type I error.