A Decedent's Transfer of $10,000 to a Trustee, to Be

question 12

Multiple Choice

A decedent's transfer of $10,000 to a trustee, to be held in trust for A, will fail to create a valid trust if: __________.

• A) it was not supported by consideration.
• B) the trustee lacks capacity.
• C) A is not a family member of the decedent.
• D) the trustee had no opportunity to renounce the trust.

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Definitions:

Service Revenue

Income earned from providing services as opposed to selling goods.

Income Statement

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

Cash Collected

The total amount of money received by a company during a specific period.

Expense Recognition Principle

An accounting principle that expenses should be recognized and recorded when they are incurred, not necessarily when they are paid.