Tommy's Parents Died in a Plane Crash and He Went

question 58

Multiple Choice

Tommy's parents died in a plane crash and he went to live with his guardian,Aunt Rose.Rose had a very small house and did not have a separate bedroom and bath for 12-year-old Tommy.She and Tommy decided to use some of his inheritance to pay for an addition to the house.He had some shares of stock transferred into Rose's name so that she could sell them when the money was due to be paid.The stock transfers are:

• A) presumed voidable unless Rose can show no unfair advantage was taken.
• B) presumed valid unless it can be proven that Tommy was taken advantage of.
• C) null and void because of undue influence.
• D) presumed void because of duress.

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Definitions:

Department Manager

An individual responsible for overseeing the operations, personnel, and budget of a specific department within a company.

Petty Cash Account

A small amount of cash kept on hand for making immediate payments for miscellaneous small expenses.

Cash Over and Short

An accounting discrepancy representing a minor difference between the actual amount of cash on hand and the recorded amount.

Miscellaneous Expenses

Expenses that don't fit into any standard category of the business's budget, often small or irregular costs.