The Minimum Disclosures for Related Party Transactions Include the Followings

question 11

Multiple Choice

The minimum disclosures for related party transactions include the followings, except:

• A) provision of doubtful debts related to outstanding balances;
• B) the amount of transactions;
• C) the amount of the outstanding balances and commitments;
• D) the key management personnel of the related party.

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Definitions:

Corporate Profit

The financial surplus gained by a corporation after deducting all costs, taxes, and expenses from revenue.

Physical Capital

The stock of tangible goods like machinery, buildings, and infrastructure that are used in production.

Human Capital

Represents the skills, knowledge, and experience possessed by an individual or population, viewed in terms of their value or cost to an organization or country.

Financial Capital

The funds provided by lenders (and investors) to businesses to purchase real capital equipment for producing goods/services.