Accounting: The agent must be able to report the status of all funds received from or on behalf of the principal. Most state real estate license laws require a broker to give accurate copies of all documents to all parties affected by them and to keep copies on file for a specified period of time. Most license laws also require the broker to deposit immediately, or within 24 to 48 hours, all funds entrusted to the broker (such as earnest money deposits) in a special trust or escrow account. Commingling such monies with the brokers personal or general business funds is strictly illegal.

 

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Accounting: The agent must be able to report the status of all funds received from or on behalf of the principal. Most state real estate license laws require a broker to give accurate copies of all docu . . . View Full Definition

Cost Accounting: Another term for expenditure. See also expenses.

Cash-Basis Accounting: A system of accounting in which transactions are recorded and revenues and expenses are recognized only when cash is received or paid.

Double-Entry Accounting: A system of recording transactions in a way that maintains the equality of the accounting equation.