The Code Defines a "Simple Trust" as Which of the Following

question 141

Multiple Choice

The Code defines a "simple trust" as which of the following?

• A)One which is allowed to file Form 1041-EZ.
• B)One which has only one income beneficiary.
• C)One which must distribute its accounting income every year.
• D)One whose grantor was a living individual.

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Definitions:

Auditor Liability

pertains to the legal responsibility auditors bear for failing to detect or report inaccuracies in financial statements they audit, leading to damages for users of these statements.

Normal Audit

A regular examination and evaluation of an entity's financial statements and records to ensure accuracy and compliance with accounting standards and regulations.

Professional Responsibilities

Duties and obligations associated with a profession, often guided by codes of conduct to ensure ethical and competent practice.

Breach of Contract

Occurs when one party fails to fulfill their obligations as outlined in a contract, justifying legal action by the non-breaching party.