EstatePass
Practice Of Real EstateTrust AccountsEASY

A transaction coordinator in Carrboro is answering a client question about trust account reconciliation, audit trail, and account designation. Which statement best applies under current North Carolina law?

Correct Answer

C) A trial balance is the list of individual ledger balances whose total should equal the reconciled bank balance and the journal balance.

A trial balance is the list of individual ledger balances whose total should equal the reconciled bank balance and the journal balance.

Answer Options
A
A trial balance is just the total cash in the operating account under current North Carolina rules
B
A trial balance shows only commissions earned by the brokerage under current North Carolina rules
C
A trial balance is the list of individual ledger balances whose total should equal the reconciled bank balance and the journal balance.
D
A trial balance may contain unexplained negative client balances with no compliance concern.

Why This Is the Correct Answer

Sign up free to unlock full analysis

Why the Other Options Are Wrong

Sign up free to unlock full analysis

Deep Analysis of This Practice Of Real Estate Question

Sign up free to unlock full analysis

Background Knowledge for Practice Of Real Estate

Sign up free to unlock full analysis
Sign up free to unlock full analysis

Real World Application in Practice Of Real Estate

Sign up free to unlock full analysis

Common Mistakes to Avoid on Practice Of Real Estate Questions

Sign up free to unlock full analysis

Related Topics & Key Terms

Key Terms:

difficulty_1ledgersmonthly_reconciliationnc_statenc_trust_account_escrow_requirementsnorth_carolinascenario_traps_edge_cases_and_enforcementtrial_balancetrust_account_reconciliation_audit_trail_and_designation
Was this explanation helpful?

More Practice Of Real Estate Questions

People Also Study

Practice More Questions

Access 2,000+ practice questions and pass your real estate exam.

Start Practicing