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IIA

IIA-CFSA · Question #341

Banks often make loans to officers, directors, employees, and principal shareholders. Discloser of these related-party transactions is required:

The correct answer is D. Either A or B. See the full explanation below for the reasoning.

Question

Banks often make loans to officers, directors, employees, and principal shareholders. Discloser of these related-party transactions is required:

Options

  • AIf they are material to the loan portfolio
  • BIn relation to total stockholder's equity
  • CIf they are presented as other liabilities
  • DEither A or B

How the community answered

(51 responses)
  • A
    6% (3)
  • B
    12% (6)
  • C
    2% (1)
  • D
    80% (41)

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