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

Question

Quizplus · Accepted Answer

An advance of one week's salary to an employee is not usually considered a related-party transaction as it is a normal course of business and does not involve any other party. The other options involve transactions between affiliated companies, principal owners, or companies owned by the same person, which are considered related-party transactions.

Which of the Following Would Most Likely Not Be Classified