Which of the Following Is Usually Not Accounted for as an Adjustment

question 20

Multiple Choice

Which of the following is usually not accounted for as an adjustment to a trust's income?

• A) ordinary repairs expense.
• B) rent expense.
• C) investment costs and commissions.
• D) insurance expense.
• E) property taxes.

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Definitions:

Free Cash Flows

Funds generated by a corporation after subtracting cash spent on operational maintenance and preservation of capital assets.

Agency Relationship

A contractual relationship where one party (the principal) grants authority to another party (the agent) to act on its behalf.

Decision-Making Authority

The power or right allocated to individuals or groups to make decisions within an organization.

Present Value

The modern-day estimation of future financial gains or sequences of cash influxes, using a particular rate of return for calculation.