Since a Will Can Direct Only Property That Is Owned

question 23

Multiple Choice

Since a will can direct only property that is owned by the testator at the time of his death, a specific bequest of property that the testator has disposed of before his death is ineffective. This is called _____.

• A) residuary
• B) will devise
• C) per stirpes
• D) ademption

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Definitions:

Retail Inventory Method

An accounting procedure for estimating inventory value by applying a percentage cost-to-retail price.

Inventory Value

The total cost or market value of all items held in inventory, including raw materials, work-in-progress, and finished goods.

FIFO Cost Flow Assumption

An inventory valuation method where goods purchased first are the first sold, assuming costs are charged in the order in which they are incurred.

LIFO Cost Flow Assumption

An inventory valuation method that assumes the last items added to inventory are the first sold, affecting the cost of goods sold and ending inventory value.