The FASB Define Related Parties as

question 79

Multiple Choice

The FASB define related parties as

• A)customers of the company
• B)investments accounted for using the equity method of accounting for investment securities
• C)trusts for the benefit of employees,such as,pension and profit sharing trusts that are managed by union representatives
• D)principal owners of the company and their immediate families
• E)employees of the company and their immediate families
• F)both A and B
• G)both B and D
• H)both C and E

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Definitions:

Small-Business

A privately owned corporation, partnership, or sole proprietorship that has fewer employees and generates less revenue than a regular-sized business.

Noninvestment Company

A company primarily engaged in businesses other than investing, reinvesting, owning, holding, or trading in securities.

Midsize-Business

A company that occupies the middle ground in terms of its size and revenue, between small businesses and large corporations.

Registration Requirements

Legal or regulatory mandates that entities must fulfill to register a product, business, or activity with the relevant authorities.