Arkansas Real Estate Practice Exam

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Why must a property manager maintain at least one owner's ledger?

For tax purposes only.
To track the property manager's income.
To keep detailed records for each property management agreement concerning monies received and disbursed.
Because it is recommended.

The correct answer is: To keep detailed records for each property management agreement concerning monies received and disbursed.

A property manager must maintain at least one owner's ledger in order to keep detailed records for each property management agreement concerning monies received and disbursed. This helps to ensure transparency and accountability in managing the finances of the property and ensures that the owner's financial interests are being properly managed. Option A is incorrect because maintaining an owner's ledger serves more purposes than just for tax purposes. Option B is incorrect because tracking the property manager's income can be done through other means and is not the primary reason for maintaining an owner's ledger. Option D is also incorrect because it is not just recommended, but it is necessary for proper financial management.