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Leno4ka [110]
3 years ago
8

________ are said to be at "arm's length," while ________ are to be reported separately in the financial statements.

Business
1 answer:
Zigmanuir [339]3 years ago
8 0

Answer:

The answer to the first blank is credit sales to customers, the second blank space is loans to company officers.

Explanation:

When offering credit sales to customers, financial institutions tend to operate in an arm’s length setting, which is the default operating process when dealing with customers. This differs from when they offer loans to company officers, or the company’s employees. Depending on the company, employees might be able to access credit at a different rate compared to the normal customers. Nevertheless, these transactions should be recorded separately from the financial statements made in the company.

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