Multiple choice general knowledge

Suspense account in the trial balance is enered in the:

  1. Profit and loss account

  2. Trading account

  3. Balance sheet

  4. None of the above
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

A suspense account is a temporary account used to hold entries with unresolved differences or errors. Since it represents an unallocated balance that must be resolved, it appears as a separate line item on the balance sheet until the discrepancy is identified and corrected.

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