Which of the Following Statements Is False

question 3

Multiple Choice

Which of the following statements is false?

• A) Charitable trusts will be valid only if they are created for a defined period of time.
• B) Charitable trusts enjoy financial privileges.
• C) Charitable trusts can have uncertain purposes.
• D) Charitable trusts do not require beneficiaries.

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Definitions:

Pension Plan

A retirement plan that outlines the benefits that employees will receive upon retirement, which is funded by contributions from the employer, the employee, or both.

Corridor

In financial terms, a corridor can refer to the allowable range of values for financial instruments or within financial models to trigger certain actions or constraints.

Prepaid Pension Asset

An asset on the balance sheet that occurs when a company pays more into a pension plan than the current cost recognized for the benefits related to the period.

Pension Expense

The cost to a company for maintaining a defined benefit pension plan, including service cost, interest cost, expected return on plan assets, and any amortization of past service costs.