Download Client Accounting for the Law Office (Lq-Paralegal) by Elaine Langston, Langston PDF

By Elaine Langston, Langston

This sensible consultant covers the entire matters in patron accounting for legislations businesses, from easy rules to belief accounting. whereas explaining the speculation in the back of the structures, the textual content sharpens severe pondering through using that idea to examples of smooth occasions. Illustrations acquaint the reader with regular records and correct approaches, whereas dialogue questions stimulate research of events within the textual content.

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Liabilities are amounts owed to otherparties including: . . suppliers, lendinginstitutions, taxation authorities, and employees. Liabilities are legal obligations to pay specified amounts, although some kinds of liabilities are traditionally recorded as estimates. TERMS balance sheet equation Assets = liabilities -+ equity. asset Tangible property and intangible rights to resources under the control of an entity, which arise from the economic activity of the entity and provide ultimate future benefits to owners.

Practically everyone in the firm contributes to these in some fashion by providing clear instructions for performing transactions and by following instructions correctly and completely. Failure of primary controls results in substantive errors, or “thingsthat actually go wrong” and must be rectified through some action. Secomiary colitrols ensurethatwhathappened is properly recorded and otherwise communicated. Practically everyone in the firm contributes to these as well by providing accurate and complete records of transactions that havealready occurred and by processing and providing accurate information.

What is Penny confused about? Explainto her the function of the accounts. Draw a simple illustration if that helps. Design a diagram that will help her rememberwhich are debits and which are credits. Synoptics are large columnarsheetswhere transaction amounts are entered in separate columns for each type of revenue or expense. At the end of the month, the columns are totaled TERMS synoptic A combination journal and ledger, usually afor bank orpetty cash account. 24 ~ I' Cash Synoptic: GeneralBank Account CLIENT ACCOUNTING FIGURE 1-6 CHAPTER 1 ACCOUNTING FUNDAMENTALS 25 and balanced (footed), and the totals are entered into the account ledgers.

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