Martha's Mother Joan Opened a Trustee Bank Account

question 149

Multiple Choice

Martha's mother Joan opened a trustee bank account.The designation on the bank account reads,"Joan Williams,as trustee for Martha Williams." This indicates that

• A)Joan will manage the funds in this account solely for the benefit of her daughter.
• B)Martha can presently retrieve funds from the account if she so wishes.
• C)Martha has no right to the funds in the account while her mother is alive.
• D)Martha has a right to retrieve funds from the account if her mother is mentally incapacitated.

---

Definitions:

Income Concepts

Various frameworks and principles used to measure and report income, including realization, recognition, and measurement principles.

Capital Maintenance

A concept in accounting that ensures a company's capital is maintained over time, typically measured in financial or physical terms.

Transactional Approach

An accounting method focusing on individual business transactions and analyzing their effects on financial statements without considering broader economic events.

Comprehensive Income

An accounting term referring to all changes in equity during a period, except those resulting from investments by and distributions to owners.