Multiple choice

A suspense account is created when

  1. profit and loss account is not correct

  2. the trial balance does not tally

  3. bank reconciliation statement

  4. None of these
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

It takes time to locate the errors, so in order to prepare the final accounts in time 'suspense account' is put in the trial balance, temporarily. When all the errors are rectified, suspense account is closed automatically.

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