The following are examples of related party transactions except * a. Extending credit to officers or directors or to entities that are owned or controlled by officers or directors b. Deposit and other transactions with directors, officers, or affiliated entities c. Expense allowances given to executives d. Guarantee loans to, or the financial performance of, an affiliated entity

The following are examples of related party transactions except * a. Extending credit to officers or directors or to entities that are owned or controlled by officers or directors b. Deposit and other transactions with directors, officers, or affiliated entities c. Expense allowances given to executives d. Guarantee loans to, or the financial performance of, an affiliated entity

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter4: The Adjustment Process

Section: Chapter Questions

Problem 2MC: Which of the following is the federal, independent agency that provides oversight of public...

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Which of the following is not a description of a classification of a financial institution? An entity that accept money from public and use such to financial instruments issued by businesses or government. An office that collect taxes from registered individuals. An associations whose members are supposed to have a common bond. A company that offers a variety of savings and loan products.
Which of the following is the federal, independent agency that provides oversight of public companies to maintain fair representation of company financial activities for investors to make informed decisions? A. IRS (Internal Revenue Service) B. SEC (Securities and Exchange Commission) C. FASB (Financial Accounting Standards Board) D. FDIC (Federal Deposit Insurance Corporation)
Which of the following statements is correct? I. To enable users of financial statements to form a view about the effects of related party relationships on an entity, it is appropriate to disclose the related party relationship when control exists, irrespective of whether there have been transactions between the related parties. II. If there have been transactions between related parties, an entity shall disclose the nature of the related party relationship as well as information about the transactions and outstanding balances necessary for an understanding of the potential effect of the relationship on the financial statements. III. Disclosures that related party transactions were made on terms equivalent to those that prevail in arm’s length transactions are encouraged by GAAP. IV. Government-controlled entities are within the scope of IFRSs, i.e. those that are profit-oriented are no longer exempted from disclosing transactions with other state-controlled entities.
The accounting information of a privately held company is generally available to all of the followingexcept for ________.A. governmental agenciesB. investorsC. creditors and lendersD. competitors
When a financial institution is a mutual association, it means that it is owned by the Group of answer choices local government. borrowers. management. depositors. creditors.
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Which of the following is not correct about special purpose financial statements? O a. This type of statement is usually required by a shareholder O b.A special-purpose financial statement is a financial report that is intended for presentation to a limited group of users O . This type of statement is usually required by a government entity O d. Special-purpose financial statements may or may not be prepared in accordance with a financial reporting framework
Which of the following is not considered a stakeholder of an organization?A. creditorsB. lendersC. employeesD. community residentsE. a business in another industry
Government entities are interested in financial statements to determine compliance of business enterprises to regulations. True or False
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Limited liability refers to an owner's liability for which of the following? The amount invested in the entity II. The liabilities of the corporation that the owner has personally guaranteed III. All the outstanding liabilities of the corporation IV. Only the corporation's loans from financial institutions Oa. Statements I, II, and IV are correct. Ob. Only statement III is correct. Oc. Only statement I is correct. Od. Statements II and IV are correct. Oe. Statements I, II, III, and IV are correct.
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