Certified Anti-Money Laundering Specialist (CAMS) 2025 – 400 Free Practice Questions to Pass the Exam

An affidavit is a written statement made under oath, which means it is a formal declaration or affirmation of facts that the signer swears to be true. This legal document is often used in various legal proceedings and is considered a reliable means of presenting evidence because it carries the weight of an oath. When someone signs an affidavit, they are doing so with the understanding that they may be held legally accountable for any false statements contained within it, which adds to its credibility.

The other options do not accurately describe an affidavit. While a legally binding financial contract involves agreements typically related to monetary obligations, it does not fit the definition of an affidavit. Similarly, an irrevocable trust is a specific estate planning tool that manages assets but has no connection to sworn statements. Lastly, a receipt for financial transactions is simply a record of the transaction rather than a sworn document attesting to the truth of provided information. Thus, the definition of an affidavit as a written statement made under oath is fitting and aligns with its legal significance.