When a Fee Advance Is Deposited into a Trust Account

question 32

Multiple Choice

When a fee advance is deposited into a trust account

• A)the attorney does not have immediate access to the funds
• B)the funds are put on hold until it clears the bank
• C)the funds are withdrawn once a month when they are earned
• D)a statement must be prepared once a month
• E)all of the above

---

Definitions:

Price System

A mechanism through which prices are determined for goods and services in an economy, guiding and coordinating economic actions by conveying information about relative market values and scarce resources.

Capital Source

The origins of the funds or assets that are invested in a business or project.

Public Goods

Goods that are non-excludable and non-rivalrous, meaning they can be used by multiple people without depleting the supply.

Provision

A specified amount set aside for future expenses or reductions in asset value, typically used in accounting and financial reporting.