Which of the Following Statements Regarding a Coverdell Education Savings

question 103

Multiple Choice

Which of the following statements regarding a Coverdell Education Savings Account (CESA) is incorrect?

• A)In order to be tax-free,distributions must be used exclusively to pay the qualified education expenses of the beneficiary.
• B)Any person can contribute to a CESA,even if he or she is not related to the beneficiary.
• C)A person can contribute to only one CESA during each tax year.
• D)Contributions to a CESA are not tax-deductible.

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Definitions:

Standard Deviation

A statistical measure that quantifies the dispersion or spread of a set of data points around their mean.

Fast Food

Food that can be prepared and served quickly, typically part of a fast-food restaurant's menu, known for being convenient and often less nutritious.

Normal Distribution

A symmetric probability distribution characterized by its bell-shaped curve, where most occurrences take place around the mean.

Firm

A business organization, such as a company or partnership, engaged in commercial, industrial, or professional activities.