Jason Does Not Execute a Will Before He Dies

question 57

Multiple Choice

Jason does not execute a will before he dies. With respect to his estate, the assets are distributed first to

• A) pay the debts of the decedent.
• B) support the surviving spouse and children.
• C) benefit the collateral heirs.
• D) satisfy gifts to the lineal heirs.

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Definitions:

Credit

An accounting entry that increases liabilities or equity or represents a decrease in assets, also refers to the provision of resources based on trust.

Owner's Capital

The amount of equity a proprietor has in the business, representing the difference between the business's assets and liabilities.

Prepaid Expenses

Expenses paid in advance for goods or services to be received in the future.