Briefly discuss the reasons for establishing a trust.
What will be an ideal response?
Possible tax savings, professional management of assets, restrictions on the donee's use or consumption of assets, protect assets from creditors.
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If a statute or government regulation enacted after a contract's creation makes performance of a party's contractual duties illegal, the promisor is excused from performing.
Answer the following statement true (T) or false (F)
Types of Audit Opinions For each of the following independent situations, determine the type of opinion that will most likely be issued by the firm auditing the financial statements of a U.S. company. 1 . The client will not allow the auditor to view
the minutes for the entire year under audit and beyond. 2 . The auditor finds that the firm is not independent of the client on the last day of fieldwork. 3 . The client declines to include a statement of cash flow in the financial statements. 4 . The client fails to record an immaterial amount of insurance paid in advance as an asset. 5 . The client does not record impairment of goodwill and will not depreciate property and equipment. Both are considered very material. 6 . There is substantial doubt about the client's ability to continue as a going concern.
A firm's credit and collection policies usually include
A) average collection period, dollar value of aged receivables, and terms of sale. B) terms of sale, quality of customers, and collection of credit sales. C) terms of sale, level of credit sales, and collection of credit sales. D) terms of sale and collection of credit sales.
The Big Boy Toy Company's best seller is a futuristic radio-controlled car. The toy is manufactured using a custom mold designed especially for the company by a local artist
If anything were to happen to this mold, the company would have to stop manufacturing the toys until the artist could reproduce the mold. The risk manager's primary concern regarding damage to this mold is probably the: A) indirect loss that will result while production of the toy is halted B) expense of paying the artist to reproduce the mold C) extra cost of manufacturing additional toys while the car cannot be manufactured D) direct damage to employees that will be laid off while production is halted