Identify Which of the Following Statements Is False

question 105

Multiple Choice

Identify which of the following statements is false.

• A)State trust law preempts the trust document when defining income.
• B)The Uniform Act on principal and income requires depreciation to be charged against income.
• C)A statement in the trust instrument concerning the allocation of depreciation to principal or income overrides a provision of state law.
• D)The Uniform Act allocates royalties to both principal and income.

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Definitions:

Chapter 7

A section of bankruptcy law under which a debtor's assets are liquidated (sold off) to pay creditors.

Bankruptcy Reorganization

A process under bankruptcy law that allows a company to rearrange its financial affairs under court supervision while continuing its operations.

Retained Earnings

The portion of a company's profits that is kept or retained rather than distributed to shareholders or used for dividend payments.

Balance Sheet

A financial statement showing a company's assets, liabilities, and equity at a specific point in time.