Which of the Following Statements Is Correct

question 52

Multiple Choice

Which of the following statements is correct?

• A) A related-party transaction is a transfer of resources, services or obligations between related parties that is not at arm's length.
• B) The existence of a related-party transaction can expose an entity to risks or opportunities that otherwise would not have existed in the absence of the relationship.
• C) Related parties include organisations that are under the control or significant influence of the entity and individuals such as key management personnel and their close family members.
• D) The existence of a related-party transaction can expose an entity to risks or opportunities that otherwise would not have existed in the absence of the relationship, and related parties include organisations that are under the control or significant influence of the entity and individuals such as key management personnel and their close family members.

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Definitions:

Cognitive Perspective

A psychological approach that focuses on how people perceive, think about, and mentally organize information about the world around them.

Encode

A process of converting data into a format that can be stored, processed, or transmitted.

Process

A series of actions or steps taken to achieve a particular end.

Retrieve Information

The process of accessing and bringing to consciousness information stored in memory.