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
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
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
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
Is a suspense account a permanent account?
Yes
No
What is the purpose of a suspense account?
When should a suspense account be cleared?