In Order for Control to Exist as the Basis for a Related-Party

question 69

True/False

In order for control to exist as the basis for a related-party disclosure the capacity to control must have been demonstrated as having been exercised in the past.

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Definitions:

Financial Performance

An assessment of a company's ability to generate earnings as compared to its expenses and other relevant costs incurred during a specific period.

Income Statement

A financial statement that shows a company’s revenues, expenses, and profits over a particular period of time.

Expense-Related Activities

Actions or operations that incur costs or expenses in the course of business operations or project execution.

Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA)

A financial performance measure that calculates a company's profitability before deductions for interest, taxes, depreciation, and amortization.