Krieg's Will Created a Trust to Take Effect Upon Krieg's

question 45

Multiple Choice

Krieg's will created a trust to take effect upon Krieg's death.The will named Krieg's spouse as both the trustee and personal representative (executor) of the estate.The will provided that all of Krieg's securities were to be transferred to the trust and named Krieg's child as the beneficiary of the trust.Which of the following is true under the circumstances?

• A) Krieg has created a testamentary trust.
• B) Krieg's spouse may not serve as both the trustee and personal representative.
• C) Krieg has created a spendthrift trust.
• D) The trust is invalid because securities cannot be transferred to a trust.

Understand the structured process of making adjusting entries.

Recognize the effects of accrued revenues and expenses on cash flows and financial statements.

Calculate and interpret key financial ratios such as return on assets, debt ratio, and profit margin.

Identify and explain the role of contra accounts in accounting.

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Definitions:

Activity Rate

The cost driver rate used in activity-based costing to allocate costs to products or services based on the activities required for their production or delivery.

Materials Handling

The process of moving, protecting, storing, and controlling materials and products in any form throughout the manufacturing and distribution process.

Material Moves

Activities involved in the physical relocation of materials within a production facility, which can impact production time and efficiency.

Overhead Cost

Indirect costs associated with production, not directly tied to a specific product, such as utilities and rent for production facilities.