asked 51.4k views
1 vote
Intercompany sales and loans to officers are both related party transactions.

A. True
B. False

asked
User Kaali
by
7.9k points

1 Answer

2 votes

Final answer:

Intercompany sales and loans to officers are both examples of related party transactions as they involve dealings between entities or individuals that have a pre-existing relationship with the company.

Step-by-step explanation:

Intercompany sales and loans to officers are indeed both related party transactions. This is because they both involve transactions that are not between independent, arms-length entities, but rather between entities or individuals that have a relationship with the company. Intercompany sales occur between different parts of the same corporate entity, while loans to officers involve transactions between the company and its management or executives, who are inherently related parties due to their position within the company.

answered
User Bernd Fischer
by
8.8k points
Welcome to Qamnty — a place to ask, share, and grow together. Join our community and get real answers from real people.