The FASB Define Related Parties as

question 34

Multiple Choice

The FASB define related parties as

• A)other parties with which the company may deal if one part controls or can significantly influence the management or operating policies of the other
• B)other parties that can influence the management or operating policies of the transacting parties or that has an ownership interest in one of the transacting parties and can influence the other party
• C)trusts for the benefit of employees,such as,pension and profit sharing trusts that are managed by union representatives
• D)principal debtors of the company and their immediate families
• E)management of the company and their immediate families
• F)both A and B
• G)both A and E
• H)both D and E

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Definitions:

Uniform Partnership Act

A set of laws adopted by some states to regulate the operations of partnerships and ensure uniformity in their treatment.

RUPA

The Revised Uniform Partnership Act, which is a set of model statutes designed to guide the formation, operation, and dissolution of partnerships in the United States.

Embezzles Client Funds

Embezzling client funds refers to the act of unlawfully taking money from those one is entrusted to manage or hold, for personal use.

Joint And Several Liability

A type of liability in which a third party can choose to sue the partners separately or to sue all partners jointly in one action.