Willow Limited and Rupert Limited Are the Two Subsidiaries of Buffy

question 25

Multiple Choice

Willow Limited and Rupert Limited are the two subsidiaries of Buffy Company. Dan Sanders, one of the directors of Buffy Company, is also a director of Rupert Limited. Dan's wife, Sandra, has 10% of shareholding in Rupert Limited. Which of the followings are related parties to Willow Limited?

• A) Buffy Company and Dan Sanders;
• B) Buffy Company and Rupert Limited;
• C) Rupert Limited and Dan Sanders;
• D) Dan Sanders and Sandra Sanders.

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Definitions:

Functional Currency

The currency of the primary economic environment in which an entity operates and carries out its transactions.

Exchange Rates

The rate at which one currency can be exchanged for another, often influenced by economic factors and market conditions.

Balance Sheet

A financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time, providing a snapshot of its financial position.