Final answer:
An escrow deposit would appear as a credit to the buyer on a closing statement, reflecting their initial payment into an escrow account for expenses like home insurance and property taxes.
Step-by-step explanation:
An escrow deposit on a closing statement would typically appear as a credit to the buyer. An escrow account is used to hold funds on behalf of the transacting parties in a real estate transaction, and the money is used to pay recurring expenses like home insurance and property taxes. At closing, the escrow deposit reflects the buyer's initial payment into this account, which is most often rolled into their mortgage payment. The seller is not credited or debited for this deposit because it doesn't directly involve the seller's finances.