A ___________ Is Used When a Contributor and a Government

question 47

Multiple Choice

A ___________ is used when a contributor and a government agree that the principal and/or income of trust assets are for the benefit of individuals.

• A) Investment Trust.
• B) Private-Purpose Trust.
• C) Pension Trust.
• D) Employee Benefit Trust.

---

Definitions:

Capital Balances

The amounts shown in a company's financial statements under shareholders' equity, representing the residual interests in the assets of the entity after deducting liabilities.

Goodwill Method

An accounting method used to evaluate the excess of purchase price over the fair value of net identifiable assets acquired in a business combination.

Journal Entries

Recorded transactions in the accounting records of a business that are used to transfer amounts from one account to another, ensuring the ledger remains in balance.

Fair Value

Fair value is an estimate of the market value of an asset, based on its current price in a fair and open market transaction.