An Attorney Receives a Check from the Defendant in Settlement

question 54

Multiple Choice

An attorney receives a check from the defendant in settlement of a lawsuit brought by his client,the plaintiff.Even if the check is made out in the name of the attorney,it will belong to the client as a:

• A) resulting trust.
• B) constructive trust.
• C) totten trust.
• D) spendthrift trust.

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Definitions:

Variable Overhead Rate Variance

The difference between the actual variable overhead incurred and the standard cost allocated based on the actual levels of the allocation base.

Lubricants

Substances applied to reduce friction and wear between surfaces in mutual contact, often used in machinery and equipment to ensure smoother operation.

Supplies

Items or materials used in the operation of a business and often classified as a type of inventory on the balance sheet.

Variable Manufacturing Overhead

Costs in the manufacturing process that vary with the level of production output, such as utilities or indirect materials, but do not directly correlate to specific units of production.