Paid Tax Preparers Must Comply with All of the Following

question 49

Multiple Choice

Paid tax preparers must comply with all of the following EXCEPT:

• A)Sign all tax returns they prepare.
• B)Comply with the provisions of Circular 230.
• C)Charge a contingent fee.
• D)Pass a competency examination.

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Definitions:

Liquidity Measures

Financial metrics used to determine how quickly a company can turn its assets into cash to meet short-term obligations. Common measures include current ratio and quick ratio.

Current Ratio

The Current Ratio is a liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year.

Quick Ratio

A liquidity measure that indicates a company's ability to cover its short-term liabilities with its most liquid assets.

Cash Ratio

A liquidity ratio that measures a company's ability to pay off its short-term liabilities with its cash and cash equivalents alone.