Which of the following would not necessarily be a related party transaction?
A)Sales to another corporation with a similar name.
B)Purchases from another corporation that is controlled by the corporation's chief stockholder.
C)Loan from the corporation to a major stockholder.
D)Sale of land to the corporation by the spouse of a director.

Question

Quizplus · Accepted Answer

Sales to another corporation with a similar name may not necessarily be a related party transaction unless there is evidence to suggest that the other corporation is controlled by the same individuals as the reporting corporation. B, C, and D all involve transactions with parties that have a close relationship to the reporting corporation and therefore could be considered related party transactions.

Which of the Following Would Not Necessarily Be a Related