COST ACCOUNTING
TRANSFER PRICING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which of the following is a related transaction? Answers can be more than one
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Transactions between related parties
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Transactions between parties that are not related but are affiliated parties of one of the parties involved in the transaction determine the counterparty of the transaction and the transaction price
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Transactions between independent parties
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Transactions between parties that have no special relationship but are Affiliated Parties of the two transacting parties determine the counterparty of the transaction and the transaction price
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Taxpayer transactions with independent parties
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Explanation:
Detailed explanation-1: -Examples of common transactions with related parties are: Sales, purchases, and transfers of real and personal property.
Detailed explanation-2: -A related party transaction is a transfer of resources, services or obligations between a reporting entity and a related party, regardless of whether a price is charged.
Detailed explanation-3: -Examples of related parties are affiliates, other subsidiaries under common control, owners of the business, its managers, and their families, the parent entity, and trusts for the benefit of employees.
Detailed explanation-4: -There are four types of financial transactions-purchases, payments, receipts, and sales.
There is 1 question to complete.