When Dividing Assets and Debt, There Are a Number of Types

question 3

Multiple Choice

When dividing assets and debt, there are a number of types of property to be negotiated. "Marital" property refers to _____.

• A) those assets owned by both spouses or acquired jointly during the marriage
• B) those assets owned individually, such as a piece of heirloom jewelry owned by one of the spouses
• C) homes, cars, furniture, jewelry, and pets
• D) property or assets that may not have a market value, but has inherent value, such as retirement benefits, bank certificates, or stocks

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Definitions:

Deferral Method

An accounting practice where certain revenues and expenses are deferred to future accounting periods, rather than being recognized immediately.

Encumbrance System

A financial accounting system used primarily by governments that tracks commitments made against funds before they are actually spent, ensuring that appropriations are not exceeded.

Expenditure Basis

An accounting method where expenses are recognized and recorded at the point when the obligation is incurred.

Purchase Orders

Purchase orders are official documents issued by a buyer committing to pay the seller for the supply of specific goods or services at agreed upon prices and terms.