When an Accountant Serves as a Trustee of a Blind

question 12

Multiple Choice

When an accountant serves as a trustee of a blind trust and prepares annual state and federal tax returns for the trust,the accountant:

• A) Is entitled to compensation both for serving as a trustee and for preparing the tax returns
• B) Is entitled to compensation for serving as the trustee, but is not entitled to separate and independent compensation for preparing the tax returns
• C) Is not entitled to compensation for serving as the trustee, but is entitled to compensation for preparing the tax returns because a trustee is not expected as part of her customary duties to have sufficient skill or training to prepare accurate tax returns
• D) Is not entitled to compensation whatsoever, and is allowed to delegate the task of preparing tax returns to a competent, paid tax return preparer

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Definitions:

Locus Of Control

The extent to which people feel they have influence over events.

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An individual's or group's belief about how capable they are of performing a particular task or function.

Leaderless Group

A type of group activity designed to assess individuals' leadership qualities and teamwork skills in the absence of a formal leader.

Project GLOBE

A research initiative that examines the impact of culture on leadership effectiveness and organizational practices across the world, aiming to understand how cultural norms and values influence business.