Which of the Following Is Not True with Respect to a Charitable

question 32

Multiple Choice

Which of the following is not true with respect to a charitable remainder trust?

• A) It permits the donor to receive tax benefits
• B) It permits the donor to receive income benefits
• C) It is revocable
• D) It pays the donor income for a certain period or for life and ultimately passes the principal to the charity
• E) All of the above are true

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Definitions:

Increases

The act or process of becoming larger or greater in size, amount, number, or degree.

Posting

The process of transferring the debits and credits from the journal entries to the accounts.

Journal Entries

An accounting action recorded through the logging of debits and credits across accounts, forming the basis for building financial statements and tracking financial transactions.

Debits And Credits

The two sides of accounts in double-entry bookkeeping; debits represent increases in assets or expenses and decreases in liabilities or equity, while credits do the inverse.