A Separate Trust Account May Be Opened for a Client

question 28

Multiple Choice

A separate trust account may be opened for a client

• A)if there are many transactions from the trust account
• B)if there is a lot of money deposited into the trust account
• C)for convenience
• D)all of the above
• E)none of the above

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Definitions:

Personal Income Tax

A tax levied on individuals or households based on their total earned income from various sources.

Earners

Individuals or entities that receive income through work, investment, or other means within an economic system.

Earned Income Tax Credit

A provision of the tax code that provides a credit or rebate to people with low earnings (income from work activities). The credit is eventually phased out if the recipient’s earnings increase.

Tax Credit

A tax incentive that allows taxpayers to subtract the amount of the credit from the total they owe to the government.