The Term "Trust Income" When Not Preceded by an Explanatory

question 8

Multiple Choice

The term "trust income" when not preceded by an explanatory word relates most closely to

• A)gross income.
• B)taxable income.
• C)distributable net income.
• D)net accounting income.

---

Definitions:

Lump-sum Merit

A one-time merit payment awarded to an employee instead of a permanent salary increase.

Base Salaries

The initial rate of compensation given to an employee, not including any extra benefits, bonuses, or raises, which serves as a foundational income.

Merit Raise

An increase in salary given to an employee based on their job performance, as a reward for their contributions to the organization.

Base Wage

The initial rate of compensation an employee receives, excluding overtime, bonuses, or other additional payments.