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:

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A separate bank account for escrow funds is used to prevent the commingling of these funds with a company's operating funds, ensuring that they are kept distinct and used only for their intended purpose.

Accounting for Escrow Funds Is Difficult Because of the Large