A Tax Levied on the Property of the Deceased After

question 39

Multiple Choice

A tax levied on the property of the deceased after it is transferred to the beneficiary is

• A)an estate tax.
• B)an inheritance tax.
• C)a gift tax.
• D)an excise tax.

---

Definitions:

Promissory Note

A financial instrument involving a written promise by one party to pay another party a definite sum of money either on demand or at a specified future date.

Maker

An individual or entity that creates or issues a financial instrument, such as a check or note, thereby promising to pay the amount stated.

Direct Write-Off Method

An accounting method where uncollectible receivables are directly written off against income at the time they are deemed unrecoverable.

Allowance Method

An accounting technique used to anticipate and adjust for potential uncollectible accounts receivable.