When making bank deposits of proceeds from auction sales, an auctioneer is required by law to use what type of account?

An auctioneer is required by law to use an escrow account for managing proceeds from auction sales. This type of account is specifically designed to hold funds on behalf of clients or third parties until certain conditions are met, ensuring that the money is handled properly and safeguarded. Using an escrow account provides a level of protection for both the auctioneer and the bidders, as it separates operational funds from client funds, thus mitigating the risk of misuse and potential legal issues. An escrow account also helps in maintaining transparency in financial transactions during the auction process.

The other options do not fulfill the legal requirements intended for handling auction proceeds. General accounts are typically used for day-to-day operations and do not segregate client funds. Active accounts can refer to any operational accounts without specific protections. Joint accounts imply shared ownership, which is not suitable for managing client funds in an auction context. Thus, the correct answer emphasizes the necessity of using an escrow account to uphold legal and ethical standards in auctioneering.