The Computer Is the Primary Tool of the Tax Professional

question 45

Multiple Choice

The computer is the primary tool of the tax professional.The tax professional uses the computer for all of the following client services except

• A)tax planning for clients.
• B)tax research for client questions.
• C)investment purchases on behalf of clients.
• D)tax return preparation.

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Definitions:

Premium

The amount paid for an insurance policy or an additional cost for receiving better service or goods.

Adverse Selection

A situation in which one party in a transaction has more information than the other, often leading to an unfavorable selection process.

Screening

The process of evaluating or testing something or someone to determine if certain criteria or standards are met, often used for selection purposes.

Signaling

The process by which one party conveys some meaningful information about itself to another party, often seen in contexts like job markets and education.