210k views
1 vote
Which of the following constitute non-recurring expenses for a trust institution? (select all that apply)

a. Settlements
b. Unusual Entries
c. Surcharges
d. Fee Waivers
e. Operational Errors

User Jordani
by
7.9k points

1 Answer

1 vote

Final answer:

The correct answer is option b. Unusual Entries.

Step-by-step explanation:

Non-recurring expenses for a trust institution are one-time or unusual costs that are not expected to occur regularly in the normal course of operations. Examples of such expenses include:

  • Settlements: These are payments made to resolve claims or disputes and are typically non-recurring, as they result from unique events or legal matters.
  • Unusual Entries: These can include one-off adjustments or transactions that do not happen as part of the regular business activities and therefore are considered non-recurring.
  • Surcharges: A surcharge could be an additional fee or penalty that is not part of routine fees, hence it could be considered non-recurring if it arises from infrequent events.

However, Fee Waivers and Operational Errors may not necessarily be non-recurring. Fee waivers can be both a regular customer service strategy or a one-time occurrence depending on the institution's policy. Operational errors, while they should be rare, aren't inherently non-recurring, as they can happen periodically in the course of normal business operations.

User Tabitha
by
8.1k points
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.