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The total balance in escrow is shown on a company's balance sheet at the end of every period, either as a liability or in a section between liabilities and equity. The separate bank account that the escrow funds are held in is shown as a current asset outside of the company's operating account. In this way, the escrow funds are both an asset and a liability in the company and are a "wash." However, the accounts cannot be netted against each other because they must be visible as both asset and liability according to GAAP.
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∙ 10y ago
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∙ 11y agoAsset
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does an escrow account count as an asset when the person has medicaid
Is a clearing account a liability or an asset?
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