FAC1503 ASSIGNMENT 3 PACK.
Q
Question 1 of 32
1.0/ 1.0 Points
Funds may be transferred from the trust bank account to the business bank
account if the client has paid expenses on behalf of the attorney and the
attorney owes the client for the payment.
True
Fals
e
Answer Key:False
Feedbac...
Funds may be transferred from the trust bank account to the business bank
account if the client has paid expenses on behalf of the attorney and the
attorney owes the client for the payment.
True
Fals
e
Answer Key:False
Feedback:Refer to learning unit 6.2
Question 2 of 32
1.0/ 1.0 Points
The trust bank balance may never be a debit balance since an irregularity may
occur.
True
Fals
e
Answer Key:False
Feedback:Refer to learning unit 6.2
Question 3 of 32
1.0/ 1.0 Points
The trust bank account should always reflect a credit balance.
True
Fals
e
, Answer Key:False
Feedback:Refer to learning unit 6.2
Question 4 of 32
1.0/ 1.0 Points
Law practices mostly require that clients deposit money into the business bank
account in advance before any services are rendered or payments are made to
third parties e.g. transfer duties, rates and taxes, deposits payable by
property buyers, etc.
True
Fals
e
Answer Key:False
Feedback:Refer to learning unit 6.1
Question 5 of 32
1.0/ 1.0 Points
All trust cash available (i.e. the trust bank account balance and any trust
investments) must be compared with the total trust liability (total of the
trust creditors’ balances). If the trust liabilities exceed the trust funds, a
trust deficit exists.
True
Fals
e
Answer Key:True
Feedback:Refer to learning unit 6.3
Question 6 of 32
1.0/ 1.0 Points
, Legal practitioners receive trust monies from clients and these funds must be
kept in a trust as per Section 86(2) of the LPA.
True
Fals
e
Answer Key:True
Feedback:Refer to learning unit 6.2
Question 7 of 32
1.0/ 1.0 Points
A pro-forma invoice issued by an attorney is to give a client an estimate of
the fees that will be rendered.
True
Fals
e
Answer Key:True
Feedback:Refer to learning unit 6.1
Part 2 of 9 - Part 2 0.0/ 1.0 Points
Question 8 of 32
0.0/ 1.0 Points
The transfer journal is used to record transfers from the client's trust creditors account to the
client's business account. Which of the following options is incorrect regarding the transferring of
trust funds?
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