What Is the Name Given to Parties Who Are Independent

question 24

Multiple Choice

What is the name given to parties who are independent of each other and not related?

• A) arm's length parties
• B) fair market parties
• C) unbiased parties
• D) preferred parties

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Definitions:

Footing

Footing is the process of summing up the numerical values in an accounting column to determine the total, typically as a preliminary step in the preparation of financial statements.

Normal Debit Balance

The expected balance type of an account that is increased by a debit, typical for assets, expenses, and losses.

Withdrawals

Money taken out from a bank account, or the act of taking out funds from a business by its owners for personal use.

Expenses

Outflows or other uses of assets or incurrences of liabilities during a period from delivering or producing goods, rendering services, or carrying out other activities that constitute the entity's ongoing major operations.