Question 1

Estimates of how many employees will be hired or funded by the firm, and their compensation levels, is referred to as a(n)________________. ​

Accepted Answer

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

Question 2

If a law office receives client funds, the law office must have a ________________________________. ​

Accepted Answer

A) savings account 
B) checking account 
C) trust account 
D) money market account 
E) all of the above 
A) savings account 
B) checking account 
C) trust account 
D) money market account 
E) all of the above C

Question 3

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. ​

Accepted Answer

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

Question 4

When parties agree to resolve a case, it is called a(n)_____________________. ​

Accepted Answer

A) compromise 
B) annulment 
C) agreement 
D) dismissal 
E) none of the above 
A) compromise 
B) annulment 
C) agreement 
D) dismissal 
E) none of the above

Question 5

Match between columns
                        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.

Accepted Answer

The Answer of zero-based budgeting system and budget and Interest is...

Question 6

Match between columns
                        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.

Accepted Answer

The Answer of zero-based budgeting system and staffing plan and is...

Question 7

Which of the following statements is true? ​

Accepted Answer

A) Law office operating funds may be deposited in the trust account. 
B) Clients funds may be deposited in the law office operating account. 
C) Client funds may be deposited in either the law office operating account or the trust account. 
D) Clients funds may be deposited in the trust account. 
E) None of the above. 
A) Law office operating funds may be deposited in the trust account. 
B) Clients funds may be deposited in the law office operating account. 
C) Client funds may be deposited in either the law office operating account or the trust account. 
D) Clients funds may be deposited in the trust account. 
E) None of the above.

Question 8

Match between columns
                        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.

Accepted Answer

The Answer of staffing plan and time-to-billing percentage and budget is...

Question 9

What is a trust account? ​

Accepted Answer

A trust account is u

Question 10

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

Accepted Answer

The Answer of staffing plan and zero-based budgeting system and is...

Question 11

Law offices can protect client funds by having their accounting staff members ______________. ​

Accepted Answer

A) bonded 
B) have their mug shots taken 
C) fingerprinted 
D) b and c 
E) none of the above 
A) bonded 
B) have their mug shots taken 
C) fingerprinted 
D) b and c 
E) none of the above

Question 12

In addition to having a trust account, a law office must also ______________________________. ​

Accepted Answer

A) keep complete records of the trust account 
B) have a savings account 
C) be able to reconcile the trust account down to how much each client has in the account 
D) have a separate trust account for each client 
E) a and c 
A) keep complete records of the trust account 
B) have a savings account 
C) be able to reconcile the trust account down to how much each client has in the account 
D) have a separate trust account for each client 
E) a and c

Question 13

Name two strategies for collecting on client accounts. ​

Accepted Answer

C areful selection of client c

Question 14

Match between columns
                        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.

Accepted Answer

The Answer of budget and internal control and zero-based budgeting is...

Question 15

The bookkeeper should always receive, deposit, and track all client payments him- or herself. ​

Accepted Answer

A) True 
 B)False

Question 16

Whoever writes and signs the checks should always reconcile the bank account. ​

Accepted Answer

A) True 
 B)False

Question 17

Match between columns
                        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.

Accepted Answer

The Answer of time-to-billing percentage and budget and settlement and is...

Question 18

What is an internal control? ​

Accepted Answer

This refers to internal proced

Question 19

What two things should an attorney do regarding a client trust account on a least a monthly basis? ​

Accepted Answer

Reconcile it (and maintain a written rec

Question 20

_______________ is what a firm actually receives in income as opposed to the amount it bills. ​

Accepted Answer

A) Realization 
B) Income budget 
C) Time-to-billing percentage 
D) Staffing plan 
E) none of the above 
A) Realization 
B) Income budget 
C) Time-to-billing percentage 
D) Staffing plan 
E) none of the above

Estimates of how many employees will be hired or funded by the firm, and their compensation levels, is referred to as a(n)________________.

If a law office receives client funds, the law office must have a ________________________________.

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.

When parties agree to resolve a case, it is called a(n)_____________________.

Which of the following statements is true?

What is a trust account?

Law offices can protect client funds by having their accounting staff members ______________.

In addition to having a trust account, a law office must also ______________________________.

Name two strategies for collecting on client accounts.

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

Whoever writes and signs the checks should always reconcile the bank account.

What is an internal control?

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

_______________ is what a firm actually receives in income as opposed to the amount it bills.

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Exam 6: Client Trust Funds and Law Office Accounting