When Funds Are Deposited into a Client's Trust Account from a Settlement

question 15

Multiple Choice

When funds are deposited into a client's trust account from a settlement

• A)the client is immediately notified
• B)the client is notified in 30 days
• C)the check is immediately cashed
• D)a notation is made in the cash payments journal
• E)none of the above

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Definitions:

Natural Business Year

A fiscal year that ends when business activities have reached the lowest point in an annual operating cycle.

Assets

Resources owned by a company from which future economic benefits are expected to flow to the entity.

Business

An enterprise or corporation participating in business, industry, or professional pursuits.

Cash Balance

The amount of cash that a company or individual has available at any given time.