The Characteristics of a Totten Trust Include

question 38

Multiple Choice

The characteristics of a totten trust include:

• A) it is a joint bank account opened by the settlor of the trust.
• B) it is tentative.
• C) transfer of ownership is complete only on the depositor's death.
• D) All of these.

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Definitions:

Credit

An accounting entry that increases the balance of liabilities and equity accounts, or decreases the balance of an asset or expense account.

Stockholders' Equity

The equity held by stockholders in a corporation, determined by subtracting total liabilities from total assets.

Dividends Account

An account used in accounting to track distributions of earnings paid to shareholders.

Salary Expense Account

An account recording the total amount paid to employees for services rendered during a specific period, before any deductions.