When Providing the Factual Background in an Internal Legal Memorandum

question 62

Multiple Choice

When providing the factual background in an internal legal memorandum you should:

• A)Omit facts that are unfavorable to the client
• B)Include irrelevant law information to make the facts section look more impressive
• C)Use lots of legalese
• D)Present an objective summary of key facts

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Definitions:

Deferred Revenue

Money received by a company for goods or services not yet delivered or performed, recorded as a liability until the transaction is completed.

Vertical Analysis

A method of financial statement analysis in which each entry for each of the three major categories of accounts (assets, liabilities, and equity) in a balance sheet is represented as a proportion of the total account.

Financial Statement

A formal record of the financial activities and position of a business, individual, or other entity.

Accrual Accounting

An accounting method that records revenues and expenses when they are incurred, regardless of when cash transactions occur, providing a more accurate picture of a company's financial condition.