Deck 4: Legal Timekeeping and Billing Software

Question 1

A fee agreement should only specify the legal procedures that the attorney is obligated to provide to the client.

Answer 1

False

Question 2

The timekeeping and billing process is a recurring cycle.

Answer 2

True

Question 3

A rough draft version of an invoice is called a(n):

A)billing report
B)management report
C)draft billing report
D)pre-billing report
E)expense report

Answer 3

D

Question 4

When filling out a timeslip, if you think you should have been able to perform a job faster, you should discount your time.

Question 5

Value billing typically requires that the attorney and client reach an agreement on fees based on the value of the services to the client.

Question 6

Clients file more ethical complaints against attorneys and law offices for fee disputes than for any other type of dispute or problem.

Question 7

A pure retainer is a relatively common type of retainer.

Question 8

Management reports are used for billing clients.

Question 9

What is an hourly fee agreement based on an attorney's experience called?

A)Activity hourly rate
B)Contingency fee
C)Client hourly rate
D)Attorney hourly rate
E)Experience hourly rate

Question 10

A retainer for general representation is considered an earned retainer.

Question 11

Electronic billing is a big improvement over traditional paper billing for large clients.

Question 12

A cash advance is an example of an earned retainer.

Question 13

The tracking of time for the purpose of billing clients called is known as:

A)timekeeping
B)billing
C)e-filing
D)timeslip management
E)reimbursement

Question 14

It is recommended to send billings out only when the firm needs to pay bills.

Question 15

Many clients prefer it when law offices bill for paralegal time as well as attorney time because paralegal hourly rates are much lower than the attorney hourly rates.

Question 16

A(n) is a charge based on the type of service actually performed.

A)activity hourly rate
B)contingency fee
C)client hourly rate
D)paralegal hourly rate
E)value rate

Question 17

Contingency fee agreements must be in writing.

Question 18

An unearned retainer is a kind of down payment.

Question 19

When selecting timekeeping and billing software, one feature to look for is a program that allows users to define a list of timekeepers and activities.

Question 20

An earned retainer:

A)must be deposited into a separate trust account
B)must be deposited into the firm's operating account
C)can be used to pay for salaries and rent
D)can be deposited into any type of account, but the interest belongs to the client
E)can be used only to pay court filing fees

Question 21

A(n) is a type of fee billed as a percentage of the total amount awarded to the client.

A)activity hourly rate
B)contingency fee
C)client hourly fee
D)value rate
E)award fee

Question 22

If a partner in a law firm wanted to see which paralegal was billing the most hours, she would check the:

A)productivity by user report
B)pre-billing report
C)aged accounts receivable report
D)case type productivity report
E)case\client list

Question 23

What is the most common type of fee agreement in the legal field?

A)Contingency fee
B)Hourly rate fee
C)Flat fee
D)Value billing fee
E)Fixed fee

Question 24

What are the three main components of a "back-office" computer system in a fully automated legal organization?

A)Word-processing software, spreadsheet software, and presentation software
B)Timekeeping and billing software, word-processing software, and accounting software
C)Timekeeping and billing software, accounting software, and case management software
D)Word-processing software, accounting software, and presentation software
E)Timekeeping and billing software, spreadsheet software, and accounting software

Question 25

A(n) is a report that shows all cases that have outstanding balances due to the firm.

A)timekeeper productivity report
B)attorney time per case report
C)matter\client list report
D)management report
E)collections report

Question 26

Which of these is NOT a function of a successful billing system?

A)It accurately tracks how much a client has paid the firm.
B)Billings contain a significant amount of legalese.
C)Billings are sent on a regular basis.
D)Billings identify the services that have been provided.
E)Billings are fair and respectful.

Question 27

If your firm bills time in quarters of an hour and you work on a project for 45 minutes, how should you mark your time on your timeslip?

A).4 hours
B).75 hours
C).8 hours
D)1 hour
E)45 minutes

Question 28

If your firm bills time in tenths of an hour and you work on a project for 45 minutes, how should you mark your time on your timeslip?

A).4 hours
B).75 hours
C).8 hours
D)1 hour
E)45 minutes

Question 29

Attorneys commonly give discounts:

A)for good customers
B)because of a client's hardship
C)as a professional courtesy
D)because the billing looks unreasonable
E)All answers are correct.

Question 30

Which type of retainer is typically used when a client such as a corporation requires continuing legal services throughout the year?

A)Pure retainer
B)Cash advance retainer
C)Case retainer
D)Retainer for general representation
E)IOLTA retainer