What is Distributable Net Income (DNI)? Distributable Net Income (DNI) is a term that describes the portion of a trust’s income allotted to the beneficiaries. The calculation of DNI is performed to distribute the income of the trust between itself and its beneficiaries. It provides beneficiaries with a dependable income source. The distributable…
What is a White-Collar Crime? White-collar crime is a non-violent crime where the primary motive is typically financial in nature. White-collar criminals usually occupy a professional position of power and/or prestige, and one that commands well above average compensation. The term “white-collar crime” was coined in the 1930s by sociologist and criminologist Edwin Sutherland. He…
What is Wire Fraud? Wire fraud is a criminal act of fraud or an attempt to commit fraud with the aid of some form of electronic communication – such as a telephone or computer – and/or communication facility. It is the means of communication used in a fraud scheme that distinguishes wire fraud from mail…
What is a Disposition? A disposition refers to the disposal of assets or securities through assignment, sale, or another transfer method. It is simply the transfer of an asset’s ownership, where the asset is either given away or sold. Dispositions involving an assignment and/or transfer can also be completed for accounting and tax purposes to…
What is Disposable Income? Disposable Income is the money that is available from an individual’s salary after he/she pays local, state, and federal taxes. It is also known as disposable personal income or net pay. The disposable income of a household includes earnings plus unemployment benefits and capital income. Disposable income is one of the…
What is Digital Currency? Digital currency is a payment system that is not based on fiat currency, but rather an alternative non-tangible currency. In practice, digital currency serves a similar practice to other currencies in terms of acting as payment in transactions. Unlike cash, digital currency lacks a physical form, therefore allowing for instantaneous transactions….
What is an Indifference Curve? An indifference curve is a contour line where utility remains constant across all points on the line. In economics, an indifference curve is a line drawn between different consumption bundles, on a graph charting the quantity of good A consumed versus the quantity of good B consumed. At each of…
What is a Debt Instrument? A debt instrument is a fixed-income asset that legally obligates the debtor to provide the lender interest and principal payments. Accessing debt financing requires the debtor to pay the creditor according to pre-defined contractual terms. The contract should outline the interest payment schedule, collateral if applicable, interest rate, maturity date, covenants,…
What is an Audit Risk Model? An audit risk model is a conceptual tool applied by auditors to evaluate and manage the various risks arising from performing an audit engagement. The tool helps the auditor decide on the types of evidence and how much is needed for each relevant assertion. The audit risk model indicates…
What is a Deductible? A deductible refers to the amount a policyholder is required to pay before an insurance provider assumes an expense. The deductible is intended to prevent policyholders from making insurance claims that they can reasonably bear the cost for. The deductible shares the risk between the policyholder and insurer. Ultimately, insurance companies…
