Which of the Following Is NOT a Trust Arrangement

question 6

Multiple Choice

Which of the following is NOT a trust arrangement?

• A)a mother transferring assets to provide for her infant should she pass away
• B)your broker requiring sufficient funds in your account to cover a deficit
• C)property of a bankrupt being transferred to a trustee
• D)a corporation transferring the title to fixed assets to a trustee for bondholders as security for the payment of the bonds
• E)parents setting up a fund for the education of their children

---

Definitions:

Manufacturing Overhead Cost

Indirect costs related to manufacturing that are not directly tied to a specific product, such as factory maintenance and utilities.

Normal Costing System

An accounting system that assigns costs to products based on the normal levels of materials, labor, and overhead.

Inventory Accounts

Accounts used to track the cost of goods a company has in stock during an accounting period, including raw materials, work in progress, and finished goods.

Actual Overhead Costs

The real costs that a company incurs for its indirect materials, indirect labor, and other overhead expenses.