The FASB define related parties as
A)other parties with which the company may deal if one part or can influence the management or operating policies of the other
B)other parties that can significantly influence the management or operating policies of the transacting parties or that has an ownership interest in one of the transacting parties and can significantly influence the other party
C)principal owners of the company and their immediate families
D)employees of the company and their immediate families
E)both B and C
F)both C and D
G)both D and E

Question

Quizplus · Accepted Answer

The Financial Accounting Standards Board (FASB) defines related parties to include not only parties that can significantly influence the management or operating policies of the transacting parties or that have an ownership interest in one of the transacting parties and can significantly influence the other party, but also principal owners of the company and their immediate families. This encompasses a broad range of relationships that could impact the financial statements.

The FASB Define Related Parties as