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Crucial Exams

Multistate Professional Responsibility Exam Practice Question

Monica is setting up her practice in a new location. She accepts a check from a client who pays an advanced fee for representation. She considers depositing the funds into her operating account, under the label “anticipated costs.” Is it appropriate for her to place these unearned funds in her operating account?

  • Yes, if she labels them in her general account ledger

  • Yes, if her client provided an agreement for monthly withdrawals

  • No, advanced funds remain in a separate account while the work is being performed

  • No, client funds are managed without being held in a special account

Multistate Professional Responsibility Exam
Safekeeping funds and other property
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