A Tax Levied on an Heir to Receive All or Part

question 9

Multiple Choice

A tax levied on an heir to receive all or part of the estate and life insurance proceeds of a deceased person is called a(n) ________ tax.

• A)estate income
• B)trust income
• C)inheritance
• D)gift
• E)estate

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Definitions:

Balance Sheet

A report detailing a business's assets, liabilities, and equity held by shareholders at a certain moment.

Revenue

The total amount of money received by a company from its business activities, such as sales of goods or services, before any expenses are subtracted.

Expense Accounts

Accounts used to record transactions relating to expenses incurred by a business, such as costs for materials, utilities, and salaries.

Common Stock

Equity securities representing ownership in a corporation, giving holders voting rights and a share in the company’s profits through dividends.