A Law Firm Manager Finds That the Firm Loses Too

question 73

Multiple Choice

A law firm manager finds that the firm loses too many of its civil cases while it wins an inordinately high number of its criminal cases.Which basic corrective action can the manager take?

• A)pay criminal lawyers more
• B)pay civil lawyers less
• C)analyze civil and criminal cases
• D)fire civil lawyers

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Definitions:

Net Income

A company's overall earnings following the deduction of all expenses and taxes from its total revenue.

Adjusting Entry

An adjusting entry is a journal entry made in the accounting records at the end of an accounting period to allocate income and expenditure to the period in which they actually occurred.

Expense Account

An account used to record individual expenditures or expenses incurred during business operations.

Liability Account

An account recording a company's obligations to pay debts to creditors in the short or long term.