Which of the Following Statements Is True Regarding Gifts and the Imposition

question 50

Multiple Choice

Which of the following statements is true regarding gifts and the imposition of conditions?

• A) Gifts may be conditional.
• B) Gifts may not be conditional.
• C) Gifts may be conditional only if a condition precedent is involved.
• D) Gifts may be conditional only if consideration is present.
• E) Gifts may be conditional only if one of the parties is related by blood or marriage.

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Definitions:

Capital Expenditures

Funds used by a company to acquire or upgrade physical assets such as property, industrial buildings, or equipment to boost its long-term revenue.

Depreciation

The accounting method of allocating the cost of a physical or tangible asset over its useful life, reflecting the asset's consumption, wear and tear, or obsolescence.

EBIT

A financial metric that calculates a company's profit by including all costs except for interest and income tax expenses, known as Earnings Before Interest and Taxes.

Free Cash Flow

The amount of cash a company generates after accounting for capital expenditures needed for operations. It is an important measure of financial performance and liquidity.