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.