The Interest Income of a Trust Usually Is Allocable to (Income

question 142

Short Answer

The interest income of a trust usually is allocable to (income, remainder) beneficiaries.

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Definitions:

Current Ratio

A liquidity ratio that measures a company's ability to cover its short-term obligations with its short-term assets.

Income Statement

A financial statement that shows a company's revenues, expenses, and net income over a specific period of time, indicating its profitability.

Debits

Entries on the left side of a double-entry accounting system that increase assets or expenses or decrease liabilities, equity, and income.

Credits

In accounting, credits refer to the side of an account that decreases assets or increases liabilities and equity.