Briefly Explain the Difference Between a Custodial Fund and a Trust

question 71

Essay

Briefly explain the difference between a custodial fund and a trust fund.

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Definitions:

Initial Cost

The original expense incurred to purchase an asset or the cost associated with starting a project.

Gain Or Loss

The financial result that occurs when the selling price of an asset differs from its purchase price.

Batting Cages

Enclosed areas designed for practicing batting skills in baseball or softball, usually equipped with pitching machines.

Fixed Assets

Long-term tangible assets used in operations and not expected to be converted to cash in the short term, such as buildings and machinery.