Which of the following would NOT be classified as a related-party transaction?
A) loans or credit sales to the principal owner or client
B) an advance of one week's salary to an employee
C) sales of merchandise between affiliated companies
D) exchanges of equipment between two companies owned by the same person

Question

Quizplus · Accepted Answer

A related-party transaction involves transactions between entities that are related to each other such as affiliates, subsidiaries, or parent companies. In option B, the advance of one week's salary to an employee is not a transaction between related parties.

Which of the Following Would NOT Be Classified as a Related-Party