A Paid Tax Return Preparer Is Allowed to Have

question 17

Multiple Choice

A paid tax return preparer is allowed to have:

• A) An indirect financial interest in a client, but not a direct financial interest
• B) A direct financial interest in a client, but not an indirect financial interest
• C) Both direct and indirect financial interests in a client, as long as the interests are not material
• D) Both direct and indirect financial interests in a client, even if these interests are material

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Definitions:

Last Dividend

The most recent distribution of profits made by a corporation to its shareholders.

Indefinitely

For an unlimited or unspecified period of time, lacking a definite end.

Recently Declared

Refers to a statement, dividend, or decision that has been announced or made public by a company or governing body in the near past.

Preferred Stock

A class of ownership in a corporation that has a higher claim on its assets and earnings than common stock, typically with fixed dividends.