If a Trust Is to Be Used for the Benefit

question 101

Multiple Choice

If a trust is to be used for the benefit individuals,private organizations or other governments,the following fund(s) should be used:

• A) Special revenue fund.
• B) Permanent fund.
• C) Private purpose fund.
• D) Either A or B

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Definitions:

Discount

A reduction to the usual price of goods or services, or in finance, the difference between the face value of a bond and its selling price.

Forego Discount

Choosing not to take advantage of early payment discounts offered by suppliers or creditors.

Costly Trade Credit

Refers to the high cost associated with the short-term financing obtained by buyers from suppliers when they choose to delay payment.

Gross Purchases

The total amount of all purchases made by a business before deducting any discounts, returns, or allowances.