Accounting for escrow funds is difficult because of the large number of transactions related to such funds.

Accounting for escrow funds is difficult because of the large number of transactions related to such funds.

A separate bank account or a trust bank account may be opened, with all escrow receipts deposited into it to prevent:
A . Commingling of escrow funds with a company’s operating funds
B . Commingling of escrow funds with a company’s liabilities
C . Commingling of escrow funds with a company’s mortgage funds
D . Commingling of escrow funds with a company’s fixed funds

View Answer

Answer: A