Chen Stevenson Died at the Age of 85 Leaving Behind

question 81

Multiple Choice

Chen Stevenson died at the age of 85 leaving behind all his property to Phillip Miller, his butler. The news of the new will that Chen executed three months before his death naming Phillip as the sole beneficiary surprised everyone. By his prior will, he had bequeathed his estate to his two daughters and three grandchildren on a per capita basis. The court took up proceedings to determine the validity of his new will because Chen's rejection of his daughters and grandchildren in his will was uncharacteristic of him. The court most likely suspected this change to be a case of ________.

• A) constructive trust
• B) undue hardship
• C) undue influence
• D) spendthrift trust

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Definitions:

Faithful Representation

A qualitative characteristic of financial information that ensures it accurately depicts the economic phenomena it represents.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or within the business's normal operating cycle.

Current Liabilities

Short-term financial obligations that are due within one year or within a normal operating cycle, including accounts payable and short-term loans.

Accounting Information

Data related to the financial transactions and status of an organization, used for analysis, reporting, and decision making.