HANDLING FINANCIAL RECORDS IN A LAW OFFICE

Is it essential that accurate financial records be kept so that clients may be periodically and properly billed for the services that they have received?

• TRUE

• FALSE

LEGAL FEES are paid to lawyers when clients require the services of the lawyer regularly throughout the year.

• TRUE

• FALSE

An escrow account contains a summary of the basic information about litigation, bankruptcy, or other types of court cases.

• TRUE

• FALSE

Docket sheets contain the client’s name, names of other parties to the action, type of action, activity performed by the attorney, and the time he devoted to each and all disbursements made by the form in connection with the proceeding.

• TRUE

• FALSE

In small firms, the lawyer might dictate the information to the legal secretary only.

• TRUE

• FALSE

In a large law firm, disbursements may be controlled by the accounting department, and all data may even be computerized.

• TRUE

• FALSE

PETTY CASH FUND is a certain amount of cash on hand to pay for incidental expenses and the immediate cash requirements of the lawyers.

• TRUE

• FALSE

The information on the client docket is transferred at regular intervals or upon the termination of an action to an account sheet.

• TRUE

• FALSE

The funds are given to the lawyer who deposits them in an account known as an ESCROW ACCOUNT or a special account.

• TRUE

• FALSE

Every transaction dealing with money, especially money that belongs to other people, must be recorded completely and accurately.

• TRUE

• FALSE