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
Answer: A