If a Paid Tax Return Preparer Discloses a Client's Social

question 11

Multiple Choice

if a paid tax return preparer discloses a client's Social Security Number,the preparer is subject to monetary penalties:

• A) Only if the disclosure was intentional
• B) Only if the disclosure was intentional or reckless
• C) If the disclosure was intentional, reckless, or inadvertent
• D) Only if the client can demonstrate that he or she suffered monetary damages

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Definitions:

Net Credit Sales

The total value of sales made on credit minus returns and allowances, reflecting the actual credit sales revenue generated.

Accounts Receivable

Amounts owed to a company by customers for products or services that have been delivered but not yet paid for.

Average Collection Period

A financial metric that calculates the average number of days it takes for a company to receive payments from its customers.

Net Sales

Income generated from sales once returns, allowances for damaged or missing items, and discounts have been subtracted.