What is the term used when a trust fund balance is greater than expected after reconciliation?

Prepare for the North Carolina Broker Reciprocal Exam. Sharpen your skills with flashcards and multiple-choice questions. Each question offers explanations to ensure clarity and understanding. Get ready to excel!

The term that accurately describes a situation where a trust fund balance is greater than expected after reconciliation is "Trust Fund Surplus." This term indicates that there are excess funds within the trust after accounting for all transactions and expenditures.

In trust fund management, a surplus can arise due to various reasons such as overestimating expenses or receiving greater than expected income or contributions to the fund. Identifying a surplus is crucial as it can affect financial planning and management strategies moving forward.

Trust fund overage, while it may seem like a suitable description, is not the standardized term most commonly used in the industry for this scenario. Other terms like trust fund deficit refer to a situation where there are not enough funds to cover obligations, or trust fund balancing, which implies the ongoing management process rather than the end result of a higher than expected fund balance. Therefore, "Trust Fund Surplus" is the correct and widely recognized terminology in this context.

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