Accounting for IGCSE & O level - Accounting Procedures (Section 25 - No. 39)
In the context of error correction, what is a suspense account typically used for?
To temporarily hold errors until the correct entry is determined.
To record unusual or infrequent transactions.
To summarize all adjustments made during the accounting period.
To store the difference in the trial balance temporarily
Explanation
A suspense account is used to temporarily hold a balancing figure for incorrect entries.
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