ASSESSMENT TASK 1 – Multiple Choice Questions
Please review the questions below and select the correct answer, e.g., a or b
1. A trust account is a bank account where you can hold money…
- on behalf of staff superannuation funds
- on behalf of another person
- on behalf of the agency
- on behalf of trading accounts
2. When must a receipt be issued If an agency receives trust money in the form of cash?
- by the end of the week
- within five (5) business days
- after the end of month reporting has been completed (bank reconciliation)
3.The trust account receipt must contain:
- the name under which the estate agent carries on business as an estate agent
- the number of the receipt
- the date the receipt is made out and, if different, the date on which the trust money is received
- the amount of the money received
- the form in which the money was received including in cash or by cheque or by electronic funds transfer or otherwise
- the name of the person from whom the money was received
- the name and reference number or other identification of the person on whose behalf the money was received
- particulars sufficient to identify the purpose for which the money was received
- the name of the person who made out the receipt
- all the above
4. Do monies received by an agent for reimbursement of expenses need to be banked in a trust account?
5. It is recommended the trust account cash journal be reconciled no later than…
- 5 business days from the end of the month
- 10 days after the end of the month
- 21 days from the end of the month
- within 14 days of the end of the month
6. Should access to the trust accounts be limited to trained staff only?
7. Are all receipts and payments of trust account money summarised in the trust account cash journals?
8. Are payments to an authorised person from an agent’s trust account able to be made in cash?
9. Do the monthly trust account reconciliation statements need to be retained to be presented to the auditor for any audit?