A related party transaction is:
A) non arm's- length transaction.
B) transaction with the auditor.
C) transaction at an undervalue.
D) all of the above

Question

Quizplus · Accepted Answer

A related party transaction is a transaction between two parties who have a pre-existing relationship or connection, which may influence the terms of the transaction. Such a transaction may not be conducted at arm’s length and could potentially result in one party receiving preferential treatment. Therefore, option A is correct as it defines a related party transaction. Options B and C are incorrect as they do not accurately define a related party transaction.

A Related Party Transaction Is