Identify Which of the Following Statements Is True

question 46

Multiple Choice

Identify which of the following statements is true.

• A)The personal exemption available to a trust is adjusted annually based on changes in the consumer price index.
• B)Income received by a trust beneficiary has the same character it had at the trust level.
• C)Distributable net income (DNI)excludes tax-exempt income.
• D)All of the above are false.

---

Definitions:

Accountant

A professional who performs accounting functions such as audits or financial statement analysis.

Cash Receipts

The collection of money, typically currency and checks, received by a business during a specified period.

Cash Payments

Outflows of cash to settle obligations or purchase assets.

Debit Balance

A condition where the sum of debits in an account exceeds the sum of credits.