Activities between affiliated entities such as subsidiaries must be disclosed in the financial statements of a corporation as
A)segment analysis
B)significant relationships
C)related-party transactions
D)contingent activities

Question

Quizplus · Accepted Answer

Related-party transactions are activities between affiliated entities, such as subsidiaries, that must be disclosed in the financial statements of a corporation. This ensures transparency and accuracy in financial reporting. Segment analysis is a separate concept that involves breaking down a company's financial performance by its various business segments. Significant relationships and contingent activities may or may not involve affiliated entities and are not necessarily required to be disclosed in the financial statements.

Activities Between Affiliated Entities Such as Subsidiaries Must Be Disclosed