A General Principle of Disclosure Is That Material Related-Party Transactions

question 51

Multiple Choice

A general principle of disclosure is that material related-party transactions should be disclosed.As the auditor of the Clarence Company,you have noted the following transactions entered into by Clarence during the past fiscal year: Assuming all of the above transactions are material,which transaction or transactions above most likely would be a related party transaction requiring disclosure in Clarence's financial statements?

• A) Only I above.
• B) Both II and III above.
• C) Both I and III above.
• D) Only III above.

---

Definitions:

Culturally Responsive

This term refers to an approach where individuals or institutions recognize and respect the cultural backgrounds and practices of others, often in educational or therapeutic contexts.

Ethical Practices

Actions and behavior that conform to accepted standards of moral and ethical principles in professional and personal conduct.

Family Engagement

The involvement of families in their children's education and school activities, emphasizing partnership between schools and families for student success.

Single-parent Families

Households headed by one adult, who takes on the roles of both caregiver and breadwinner, raising one or more children alone.