Question 1

Which of the following would not be included in the corpus or principal of an estate?

Accepted Answer

These items, as well as investments, cash, real estate, capital interests in businesses, intangible assets, unpaid wages and notes receivable, would all be included in the principal of an estate.

Question 2

When assets are discovered after the initial accounting for estate principal, the fiduciary will credit:

Accepted Answer

When assets are discovered after the initial accounting for estate principal, the fiduciary will make the following entry:
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Question 3

In a testate distribution, a gift of property left after all other legacies have been assigned is referred to as a

Accepted Answer

A residuary legacy is composed of all estate property remaining after assigning the specific, demonstrative, and general legacies.

Question 4

If after paying debts and expenses, the estate principal is not adequate to satisfy the various legacies, the legacies are satisfied to whatever extent possible through the:

Accepted Answer

If after paying debts and expenses, the estate principal is not adequate to satisfy the various legacies, the legacies are satisfied to whatever extent possible through the abatement process.

Question 5

Which of the following best describes the accounting for discounts and premiums for bonds purchased by a fiduciary for an estate?

Accepted Answer

When bonds are part of the estate at the time of death, the premium or discount on the bonds is not amortized. However, if bonds are purchased subsequently by the fiduciary, a premium is generally amortized, whereas a discount is not amortized.

Question 6

Which of the following is not a legacy?

Accepted Answer

A distribution of real property (such as land) is a devise. Distributions of personal property are called legacies.

Question 7

Which of the following items is not charged against the income of an estate?

Accepted Answer

A loss on the sale of an estate asset is charged to estate principal, not income.

Question 8

An administrator of an estate differs from an executor of a will in that an administrator

Accepted Answer

If a person has no will or an invalid will, the person is said to have died intestate. In this situation, the probate court appoints an administrator and distributes the net assets of the estate according to state inheritance laws.

Question 9

The party ultimately receiving the principal of an estate may be referred to as the
A)income beneficiary.
B)remainderman.
C)
C)devisee.
D)b and

Accepted Answer

The answer of The party ultimately receiving the principal of...

Question 10

In the initial journal entry recording the inventory of the estate, liabilities incurred by the decedent are

Accepted Answer

Obligations of the estate are recognized when they are paid or satisfied through the distribution of estate principal, rather than being immediately recognized on an accrual basis.

Question 11

All of the following would be charged to principal in an estate except:

Accepted Answer

Property taxes or other expenses incurred by the estate to protect income flow would be charged to income.

Question 12

Which of the following items is not included in the estate principal subsequent to the date of death?

Accepted Answer

Assets discovered after the date of death and gains and losses on the sale of principal assets are included in the determination of estate principal.

Question 13

The primary purpose of accounting for estates is to facilitate reporting to the court during the fiduciary's term. Therefore, which of the following concepts is least important?

Accepted Answer

Information pertaining to income of an estate may appear illogical given GAAP.

Question 14

A gift from a specific source, with the will stipulating that if the amount cannot be satisfied from that source, it should be satisfied from the general estate is a __________ legacy.

Accepted Answer

A gift from a specific source, with the will stipulating that if the amount cannot be satisfied from that source, it should be satisfied from the general estate is a demonstrative legacy.

Question 15

Property that is titled as "joint tenants" allows for:

Accepted Answer

Property that is titled as "joint tenants" allows for the property to pass outside of probate to a surviving joint owner.

Question 16

Which of the following statements is true concerning the handling of discounts and premiums for bonds that are part of an estate at the time of death?

Accepted Answer

When bonds are part of the estate at the time of death, the premium or discount on the bonds is not amortized. However, if bonds are purchased subsequently by the fiduciary, a premium is generally amortized, whereas a discount is not amortized.

Question 17

Which of the following statements concerning accounting for depreciation and depletion in an estate is not true?

Accepted Answer

Generally speaking, one would expect charges against income to include a reasonable allowance for depreciation per GAAP as well as an allowance for depletion. If the decedent wishes to protect principal from the depreciation factor, the will should state that depreciation should be charged against income, and an amount equal to the depreciation should be transferred from income to principal.

Question 18

Which of the following items are chargeable against the income of an estate?

Accepted Answer

Legal fees incurred to protect the income flow of an estate are chargeable against the income of an estate. Costs of probating the will and losses on the sale of estate assets are chargeable to principal.

Question 19

In an intestate distribution, personal property is distributed

Accepted Answer

If a person has no will or an invalid will, the person is said to have died intestate. In this situation, the probate court appoints an administrator and distributes the net assets of the estate according to state inheritance laws.

Question 20

Which of the following is not an example of income in an estate?

Accepted Answer

Gains and losses on the disposition of estate principal are included in the principal of the estate.

Quiz 20: Estates and Trusts: Their Nature and the Accountants Role

Which of the following would not be included in the corpus or principal of an estate?

When assets are discovered after the initial accounting for estate principal, the fiduciary will credit:

In a testate distribution, a gift of property left after all other legacies have been assigned is referred to as a

If after paying debts and expenses, the estate principal is not adequate to satisfy the various legacies, the legacies are satisfied to whatever extent possible through the:

Which of the following best describes the accounting for discounts and premiums for bonds purchased by a fiduciary for an estate?

Which of the following is not a legacy?

Which of the following items is not charged against the income of an estate?

An administrator of an estate differs from an executor of a will in that an administrator

The party ultimately receiving the principal of an estate may be referred to as the A)income beneficiary. B)remainderman. C) C)devisee. D)b and

In the initial journal entry recording the inventory of the estate, liabilities incurred by the decedent are

All of the following would be charged to principal in an estate except:

Which of the following items is not included in the estate principal subsequent to the date of death?

The primary purpose of accounting for estates is to facilitate reporting to the court during the fiduciary's term. Therefore, which of the following concepts is least important?

A gift from a specific source, with the will stipulating that if the amount cannot be satisfied from that source, it should be satisfied from the general estate is a __________ legacy.

Property that is titled as "joint tenants" allows for:

Which of the following statements is true concerning the handling of discounts and premiums for bonds that are part of an estate at the time of death?

Which of the following statements concerning accounting for depreciation and depletion in an estate is not true?

Which of the following items are chargeable against the income of an estate?

In an intestate distribution, personal property is distributed

Which of the following is not an example of income in an estate?