Meaning of Suspense Account - SS1 Accounting Past Questions and Answers - page 1
What is a suspense account?
A permanent account used for recording transactions
A temporary account used for recording transactions that cannot be immediately identified or allocated to a specific account
A type of account used for recording suspenseful events
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When is a suspense account used?
To record all transactions in a company
To record transactions that can be immediately identified
To record transactions that cannot be immediately identified or allocated to a specific account
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How long should a transaction remain in a suspense account?
Indefinitely
Until the end of the financial year
As soon as possible to ensure accurate financial reporting
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Why should a suspense account be cleared as soon as possible?
To increase the suspenseful nature of the account
To ensure accurate financial reporting
To avoid paying taxes on the balance
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Is a suspense account a permanent account?
Yes
No
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What is the purpose of a suspense account?
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When should a suspense account be cleared?
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