Question

If a business entity entered into certain related party transactions, it would be required to disclose all of the following information except:
A. the nature of any future transactions planned between the parties and the terms involved
B. dollar amount of the transactions for each of the periods for which an income statement is presented
C. amounts due from or to related parties as of the date of each balance sheet presented
D. nature of the relationship between the parties to the transactions.

Answer 1

Answer:

A. the nature of any future transactions planned between the parties and the terms involved

Explanation:

If a business entity entered into certain related party transactions, it would be required to disclose details such as the dollar amount of the transactions for each of the periods for which an income statement is presented,amounts due from or to related parties as of the date of each balance sheet presented,nature of the relationship between the parties to the transactions.

These options are related with the current transactions involved between the two parties.

It will however be wrong and unethical to disclose the nature of any future transactions planned between the parties and the terms involved.