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Which of the Following Transactions Are Not Related Party Transactions

Question 1

Multiple Choice

Which of the following transactions are not related party transactions for an entity?
I. An employee purchased the entity's products on normal trading terms.
II. A subsidiary of the entity supplied raw materials to the entity.
III. The entity lent money to one of its directors.
IV. The entity made an agreement with a trade union about increase in employee's wages.


A) I and II only.
B) II and III only.
C) I and IV only.
D) III and IV only.

Correct Answer:

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