Question 1

You should always use last year's budget or actual figures to estimate the coming year's budget. &#8203;

Accepted Answer

While last year's budget or actual figures can provide a useful reference, they may not accurately reflect changes in circumstances, inflation, strategic priorities, or unexpected expenses. It's important to consider a variety of factors and adjust estimates accordingly for the coming year's budget.

Question 2

When drafting an income budget, such as estimating the number of billable hours a timekeeper will bill, it is recommended that you use a ____________________ estimate, because you do not want to overestimate income.

A)liberal
B)conservative
C)total guess
D)recent year's
E)none of the above

B

Accepted Answer

Using a conservative estimate ensures that you are not overstating your expected income, and therefore it is a more realistic approach to budgeting. A liberal estimate may lead to setting unrealistic goals and financial plans, which could result in financial difficulties later on. A total guess or recent year's estimate may not accurately reflect changes in the current economic climate or shifts in business operations.

Question 3

Law offices must return client funds back to a client __________________. &#8203;&#10;A)promptly, and must render a full accounting of the funds&#10;B)when the law office gets around to it&#10;C)when the client calls the disciplinary administrator&#10;D)when there are funds in the law office operating account to repay the trust account&#10;E)none of the above

Accepted Answer

Law offices have a duty to promptly return client funds back to the client and provide a full accounting of the funds. Delaying or failing to return client funds can result in disciplinary action.

Question 4

A draw refers to partners receiving a monthly check as an anticipated share of profits. &#8203;

Accepted Answer

A draw is a common way for partners in a business to receive a regular payment based on their anticipated share of profits, even if the actual profits for the period are not yet determined.

Question 5

When building a law office budget, the _________________________ adjusts downward the actual amount that will be billed to the client, taking into account the fact that timekeepers are not always able to bill at their optimum levels.

A)income budget
B)realization
C)staffing plan
D)time-to-billing percentage
E)none of the above

Accepted Answer

The answer of When building a law office budget, the...

Question 6

Which of the following statements is true? &#8203;&#10;A)Law office operating funds may be deposited in the trust account.&#10;B)Clients funds may be deposited in the law office operating account.&#10;C)Client funds may be deposited in either the law office operating account or the trust account.&#10;D)Clients funds may be deposited in the trust account.&#10;E)None of the above.

Accepted Answer

Client funds must be deposited in the trust account to protect clients' money from being commingled with the lawyer's personal or business funds. Law office operating funds should never be deposited in the trust account.

Question 7

Whoever writes and signs the checks should always reconcile the bank account. &#8203;

Accepted Answer

Separating the duties of writing and signing checks from reconciling the bank account is a key internal control to prevent fraud and errors, ensuring that no single individual has control over all aspects of financial transactions.

Question 8

If a law office receives client funds, the law office must have a ________________________________. &#8203;&#10;A)savings account&#10;B)checking account&#10;C)trust account&#10;D)money market account&#10;E)all of the above

Accepted Answer

A law office that receives client funds must have a trust account, which is specifically designed to hold client funds separately from the law firm's general operating funds. This ensures that the funds remain safe and are only used for their intended purpose. Using a savings, checking, or money market account for client funds would not provide the necessary safeguards.

Question 9

The bookkeeper should always receive, deposit, and track all client payments him- or herself. &#8203;

Accepted Answer

Segregation of duties is a key internal control principle that helps prevent fraud and errors, meaning tasks such as receiving, depositing, and tracking payments should be divided among different individuals.

Question 10

_______________ is what a firm actually receives in income as opposed to the amount it bills. &#8203;&#10;A)Realization&#10;B)Income budget&#10;C)Time-to-billing percentage&#10;D)Staffing plan&#10;E)none of the above

Accepted Answer

The answer of _______________ is what a firm actually receives...

Question 11

Lawyers may share fees with other professionals, such as CPAs. &#8203;

Accepted Answer

The answer of Lawyers may share fees with other professionals,...

Question 12

Match between columns&#10;                        Premises: A mutual agreement to resolve a dispute on specified terms.&#10;A mutual agreement to resolve a dispute on specified terms.&#10;A mutual agreement to resolve a dispute on specified terms.&#10;A mutual agreement to resolve a dispute on specified terms.&#10;A mutual agreement to resolve a dispute on specified terms.&#10;A mutual agreement to resolve a dispute on specified terms.&#10;A mutual agreement to resolve a dispute on specified terms.&#10;A mutual agreement to resolve a dispute on specified terms.&#10;A mutual agreement to resolve a dispute on specified terms.

Accepted Answer

The Answer of budget and income budget and Interest on is...

Question 13

When drafting an expense budget, such as estimating overhead expenses, it is recommended that you use a ______________ estimate, because you do not want to underestimate expenses. &#8203;&#10;A)liberal&#10;B)conservative&#10;C)total guess&#10;D)recent year's&#10;E)none of the above

Accepted Answer

The answer of When drafting an expense budget, such as...

Question 14

Match between columns&#10;                        Premises: Procedures that an organization establishes to set up checks and balances so that no individual in the organization has exclusive control over any part of the accounting system.&#10;Procedures that an organization establishes to set up checks and balances so that no individual in the organization has exclusive control over any part of the accounting system.&#10;Procedures that an organization establishes to set up checks and balances so that no individual in the organization has exclusive control over any part of the accounting system.&#10;Procedures that an organization establishes to set up checks and balances so that no individual in the organization has exclusive control over any part of the accounting system.&#10;Procedures that an organization establishes to set up checks and balances so that no individual in the organization has exclusive control over any part of the accounting system.&#10;Procedures that an organization establishes to set up checks and balances so that no individual in the organization has exclusive control over any part of the accounting system.&#10;Procedures that an organization establishes to set up checks and balances so that no individual in the organization has exclusive control over any part of the accounting system.&#10;Procedures that an organization establishes to set up checks and balances so that no individual in the organization has exclusive control over any part of the accounting system.&#10;Procedures that an organization establishes to set up checks and balances so that no individual in the organization has exclusive control over any part of the accounting system.

Accepted Answer

The Answer of budget and income budget and Interest on is...

Question 15

When parties agree to resolve a case, it is called a(n)_____________________. &#8203;&#10;A)compromise&#10;B)annulment&#10;C)agreement&#10;D)dismissal&#10;E)none of the above

Accepted Answer

The answer of When parties agree to resolve a case,...

Question 16

Trust account funds can be used to _______________________. &#8203;&#10;A)pay for law office rent&#10;B)pay the law office for fees that have now been earned&#10;C)pay for staff payroll if the staff members worked on the client's case&#10;D)make a deposit into the law office operating account if the funds will be repaid&#10;E)none of the above

Accepted Answer

The answer of Trust account funds can be used to...

Question 17

Estimates of how many employees will be hired or funded by the firm, and their compensation levels, is referred to as a(n)________________. &#8203;&#10;A)income budget&#10;B)realization&#10;C)time-to-billing percentage&#10;D)long-range plan&#10;E)none of the above

Accepted Answer

The answer of Estimates of how many employees will be...

Question 18

In addition to having a trust account, a law office must also ______________________________. &#8203;&#10;A)keep complete records of the trust account&#10;B)have a savings account&#10;C)be able to reconcile the trust account down to how much each client has in the account&#10;D)have a separate trust account for each client&#10;E)a and c

Accepted Answer

The answer of In addition to having a trust account,...

Question 19

Law offices can protect client funds by having their accounting staff members ______________. &#8203;&#10;A)bonded&#10;B)have their mug shots taken&#10;C)fingerprinted&#10;D)b and c&#10;E)none of the above

Accepted Answer

The answer of Law offices can protect client funds by...

Question 20

Match between columns&#10;                        Premises: Estimate of how many employees will be hired or funded by the firm, what positions or capacities they will serve in, what positions will need to be added, what old positions will be deleted, and how much compensation each employee will receive.&#10;Estimate of how many employees will be hired or funded by the firm, what positions or capacities they will serve in, what positions will need to be added, what old positions will be deleted, and how much compensation each employee will receive.&#10;Estimate of how many employees will be hired or funded by the firm, what positions or capacities they will serve in, what positions will need to be added, what old positions will be deleted, and how much compensation each employee will receive.&#10;Estimate of how many employees will be hired or funded by the firm, what positions or capacities they will serve in, what positions will need to be added, what old positions will be deleted, and how much compensation each employee will receive.&#10;Estimate of how many employees will be hired or funded by the firm, what positions or capacities they will serve in, what positions will need to be added, what old positions will be deleted, and how much compensation each employee will receive.&#10;Estimate of how many employees will be hired or funded by the firm, what positions or capacities they will serve in, what positions will need to be added, what old positions will be deleted, and how much compensation each employee will receive.&#10;Estimate of how many employees will be hired or funded by the firm, what positions or capacities they will serve in, what positions will need to be added, what old positions will be deleted, and how much compensation each employee will receive.&#10;Estimate of how many employees will be hired or funded by the firm, what positions or capacities they will serve in, what positions will need to be added, what old positions will be deleted, and how much compensation each employee will receive.&#10;Estimate of how many employees will be hired or funded by the firm, what positions or capacities they will serve in, what positions will need to be added, what old positions will be deleted, and how much compensation each employee will receive.

Accepted Answer

The Answer of budget and income budget and Interest on is...

Question 21

What is a trust account? &#8203;

Accepted Answer

The answer of What is a trust account? &#8203;...

Question 22

Explain what an IOLTA is.

Accepted Answer

The answer of Explain what an IOLTA is....

Question 23

What two things should an attorney do regarding a client trust account on a least a monthly basis? &#8203;

Accepted Answer

The answer of What two things should an attorney do...

Question 24

Name two strategies for collecting on client accounts. &#8203;

Accepted Answer

The answer of Name two strategies for collecting on client...

Question 25

Match between columns&#10;                        Premises: Procedure that forces everyone in the organization to justify and explain his or her budget figures in depth without using prior years' figures as justification.&#10;Procedure that forces everyone in the organization to justify and explain his or her budget figures in depth without using prior years' figures as justification.&#10;Procedure that forces everyone in the organization to justify and explain his or her budget figures in depth without using prior years' figures as justification.&#10;Procedure that forces everyone in the organization to justify and explain his or her budget figures in depth without using prior years' figures as justification.&#10;Procedure that forces everyone in the organization to justify and explain his or her budget figures in depth without using prior years' figures as justification.&#10;Procedure that forces everyone in the organization to justify and explain his or her budget figures in depth without using prior years' figures as justification.&#10;Procedure that forces everyone in the organization to justify and explain his or her budget figures in depth without using prior years' figures as justification.&#10;Procedure that forces everyone in the organization to justify and explain his or her budget figures in depth without using prior years' figures as justification.&#10;Procedure that forces everyone in the organization to justify and explain his or her budget figures in depth without using prior years' figures as justification.

Accepted Answer

The Answer of budget and income budget and Interest on is...

Question 26

List four examples of acceptable internal controls.

Accepted Answer

The answer of List four examples of acceptable internal controls....

Question 27

Match between columns&#10;                        Premises: Amount a firm actually receives in income as opposed to the amount it bills.&#10;Amount a firm actually receives in income as opposed to the amount it bills.&#10;Amount a firm actually receives in income as opposed to the amount it bills.&#10;Amount a firm actually receives in income as opposed to the amount it bills.&#10;Amount a firm actually receives in income as opposed to the amount it bills.&#10;Amount a firm actually receives in income as opposed to the amount it bills.&#10;Amount a firm actually receives in income as opposed to the amount it bills.&#10;Amount a firm actually receives in income as opposed to the amount it bills.&#10;Amount a firm actually receives in income as opposed to the amount it bills.

Accepted Answer

The Answer of budget and income budget and Interest on is...

Question 28

Match between columns&#10;                        Premises: System of adjusting downward the actual amount that will be billed to clients during the budget process, taking into account the fact that timekeepers are not always able to bill at their optimum levels.&#10;System of adjusting downward the actual amount that will be billed to clients during the budget process, taking into account the fact that timekeepers are not always able to bill at their optimum levels.&#10;System of adjusting downward the actual amount that will be billed to clients during the budget process, taking into account the fact that timekeepers are not always able to bill at their optimum levels.&#10;System of adjusting downward the actual amount that will be billed to clients during the budget process, taking into account the fact that timekeepers are not always able to bill at their optimum levels.&#10;System of adjusting downward the actual amount that will be billed to clients during the budget process, taking into account the fact that timekeepers are not always able to bill at their optimum levels.&#10;System of adjusting downward the actual amount that will be billed to clients during the budget process, taking into account the fact that timekeepers are not always able to bill at their optimum levels.&#10;System of adjusting downward the actual amount that will be billed to clients during the budget process, taking into account the fact that timekeepers are not always able to bill at their optimum levels.&#10;System of adjusting downward the actual amount that will be billed to clients during the budget process, taking into account the fact that timekeepers are not always able to bill at their optimum levels.&#10;System of adjusting downward the actual amount that will be billed to clients during the budget process, taking into account the fact that timekeepers are not always able to bill at their optimum levels.

Accepted Answer

The Answer of budget and income budget and Interest on is...

Question 29

What is an internal control? &#8203;

Accepted Answer

The answer of What is an internal control? &#8203;...

Question 30

Match between columns&#10;                        Premises: A projected plan of income and expenses for a set period of time, usually a year.&#10;A projected plan of income and expenses for a set period of time, usually a year.&#10;A projected plan of income and expenses for a set period of time, usually a year.&#10;A projected plan of income and expenses for a set period of time, usually a year.&#10;A projected plan of income and expenses for a set period of time, usually a year.&#10;A projected plan of income and expenses for a set period of time, usually a year.&#10;A projected plan of income and expenses for a set period of time, usually a year.&#10;A projected plan of income and expenses for a set period of time, usually a year.&#10;A projected plan of income and expenses for a set period of time, usually a year.

Accepted Answer

The Answer of budget and income budget and Interest on is...

Question 31

Match between columns&#10;                        Premises: Estimate of how many partners, associates, legal assistants, and others will bill for their time, what the appropriate rates of hourly charge should be, and the number of billable hours each timekeeper will be responsible for billing.&#10;Estimate of how many partners, associates, legal assistants, and others will bill for their time, what the appropriate rates of hourly charge should be, and the number of billable hours each timekeeper will be responsible for billing.&#10;Estimate of how many partners, associates, legal assistants, and others will bill for their time, what the appropriate rates of hourly charge should be, and the number of billable hours each timekeeper will be responsible for billing.&#10;Estimate of how many partners, associates, legal assistants, and others will bill for their time, what the appropriate rates of hourly charge should be, and the number of billable hours each timekeeper will be responsible for billing.&#10;Estimate of how many partners, associates, legal assistants, and others will bill for their time, what the appropriate rates of hourly charge should be, and the number of billable hours each timekeeper will be responsible for billing.&#10;Estimate of how many partners, associates, legal assistants, and others will bill for their time, what the appropriate rates of hourly charge should be, and the number of billable hours each timekeeper will be responsible for billing.&#10;Estimate of how many partners, associates, legal assistants, and others will bill for their time, what the appropriate rates of hourly charge should be, and the number of billable hours each timekeeper will be responsible for billing.&#10;Estimate of how many partners, associates, legal assistants, and others will bill for their time, what the appropriate rates of hourly charge should be, and the number of billable hours each timekeeper will be responsible for billing.&#10;Estimate of how many partners, associates, legal assistants, and others will bill for their time, what the appropriate rates of hourly charge should be, and the number of billable hours each timekeeper will be responsible for billing.

Accepted Answer

The Answer of budget and income budget and Interest on is...

Question 32

Match between columns&#10;                        Premises: An interest-bearing account set up specifically to hold trust funds. The interest that accrues on an IOLTA account is given to a state bar foundation or other nonprofit legal organization for the good of the public. &#10;An interest-bearing account set up specifically to hold trust funds. The interest that accrues on an IOLTA account is given to a state bar foundation or other nonprofit legal organization for the good of the public. &#10;An interest-bearing account set up specifically to hold trust funds. The interest that accrues on an IOLTA account is given to a state bar foundation or other nonprofit legal organization for the good of the public. &#10;An interest-bearing account set up specifically to hold trust funds. The interest that accrues on an IOLTA account is given to a state bar foundation or other nonprofit legal organization for the good of the public. &#10;An interest-bearing account set up specifically to hold trust funds. The interest that accrues on an IOLTA account is given to a state bar foundation or other nonprofit legal organization for the good of the public. &#10;An interest-bearing account set up specifically to hold trust funds. The interest that accrues on an IOLTA account is given to a state bar foundation or other nonprofit legal organization for the good of the public. &#10;An interest-bearing account set up specifically to hold trust funds. The interest that accrues on an IOLTA account is given to a state bar foundation or other nonprofit legal organization for the good of the public. &#10;An interest-bearing account set up specifically to hold trust funds. The interest that accrues on an IOLTA account is given to a state bar foundation or other nonprofit legal organization for the good of the public. &#10;An interest-bearing account set up specifically to hold trust funds. The interest that accrues on an IOLTA account is given to a state bar foundation or other nonprofit legal organization for the good of the public.

Accepted Answer

The Answer of budget and income budget and Interest on is...

Deck 6: Client Trust Funds and Law Office Accounting