MULTI-CURRENCY MULTIPLE
CHOICE TEST

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1. BLA BLA BLAw is a relatively rare bookkeeping challenge for law firms as opposed to most other types of companies?
a. Track expenses by job long after purchaseb. Collect from 3rd parties on behalf of clients and keep the earned income part and remit the restc. Bill with industry standard expense itemsd. All of the above

2. Not all law firms collect on behalf of clients. If proper legal record-keeping procedures are followed, how many separate records are there in a law firm’s QBO account that track money collected on behalf of clients?
a.Just 1, the attorneys’ trust bank account.b. There are 2, the trust bank account and client’s data in the customer reports.c. There are 3, the trust bank account, the liability account in the chart of accounts “lawsuit payouts payable”, and the customer-specific reports.d. None of the above

3. How does QuickBooks online enable the law firm’s accountant to make sure that any check or expense has been billed to the correct client?
a. Open the trial balance and look in the account for unearned legal feesb. Use the search toolc. Use the “unbilled costs by client” reportd. Use the transaction list by customer

4. How does QuickBooks online allow the law firm to make sure collections on behalf of clients are clearly distinguished from retainer payments from clients?
a. Deposit the money into the attorney “trust” accountb. When receiving the money, use a different current asset account from the normal “unearned legal fees account”c. Record receiving the money in the expense windowd. When receiving the money, use the journal entry window instead of the receive payments windowe. Answers Both “A” and “C” abovef. Answers Both “A” and “B” above

5. Which items are attorneys NOT responsible for keeping records of?
a. The balance of normal retainer payments for future client servicesb. The balance of collected lawsuit payout balancesc. The quantity currently on hand of supplies we use for jobsd. None of the above

6. Why do attorneys have a negative balance in their “account receivable” type of accounts?
a. QuickBooks Online is designed for most common companies that get paid after they give service, but attorneys usually get paid before the service is givenb. Sometimes clients don’t payc. Some client related expenses need to be paid in advanced. None of the above

7. What's the appropriate document in QuickBooks to make if the client pays immediately for the same day service?
a. Invoiceb. Sales Receiptc. Credit memod. A check

8. What subscription level of QuickBooks Online do you need to be able to track billable expenses by client?
a. Self-employedb. Essentialsc. Plus, Or Advancedd. None of the above

9. How can you enable your QuickBooks online account to track billable costs by job?
a. Change your subscription level to essentials or self – employedb. Customize specific reportsc. Enter the transactions separately in the journal and then as an invoice in the customer recordsd. Activate the “track expenses by job” feature” in the account settings window from the cog wheel

10. When billing clients for job-related expenses, what are the 2 possible things that could happen in the general ledger when accounts receivable increases?
a. The expenses you paid goes down OR the income from billable expense goes upb. The expenses you paid goes up OR the income from billable expense goes downc. No change to the accounts when billing the customer for past job expenses paidd. None of the above

11. Regarding the question above, what do you do if you want to change from 1 method of recording billable expenses to the other?
a. You Must Change the defaults on how reports are displayed by customizing the relevant reportsb. You must remove the related expense account from the chart of accountc. You must change the option in the account settings window and then map the billable expense to a related income accountd. You must change from QuickBooks online to QuickBooks desktop

12. If you choose to use expense items when billing clients, what will happen at the moment you bill the client for expense items that were paid for before you used them on a client’s job?
a. Unearned Legal fees / Legal Fees Receivable (Accounts Receivable) will not changeb. The expense you paid for will increasec. The expense you paid for will stay the samed. The income account associated with the item you used will decrease

13. What procedure listed below requires that you put an item on the list of products and services in order to execute?
a. Writing off uncollectable client accountsb. Collecting on behalf of clientsc. Billing for non-specific office suppliesd. Making a journal entrye. No, you do not need

14. When writing a refund check to a client, what account from the chart of accounts must you use in the "category" field in the checks or expense window?
a. Unearned legal feesb. Legal fees earnedc. Delivery expensed. Legal fees receivable

15. What window do you open when writing off uncollectable client's balances?
a. Sales Receiptsb. Invoicec. Customer Listd. Credit Memo

16. What field in the "write checks" window allows you to track cost by client?
a. Nameb. Datec. Amountd. Customer