Examples of Related Party Transactions That Must Be Disclosed Include

question 8

Multiple Choice

Examples of related party transactions that must be disclosed include:

• A) settlement of liabilities;
• B) disposal of assets;
• C) purchase or sales of goods;
• D) all of the above.

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Definitions:

Closing Entries

The journal entries made at the end of an accounting period to transfer the balances of temporary accounts to permanent ones, preparing the books for the next period.

Retained Earnings

Profits that a company keeps to use within the business after dividends have been paid out to shareholders.

Fiscal Year

A one-year period used for financial reporting and budgeting, which may or may not align with the calendar year.

Goods Sold

Goods sold refers to the total quantity of goods that a company has sold to its customers during a specific accounting period.