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The suspense account is used to correct book-keeping error where the

The suspense account is used to correct book-keeping error where the
Take Free Practice Test On 2026 JAMB UTME, Post UTME, WAEC SSCE, GCE, NECO SSCE
  • A Amount involved is quite significant
  • B Item involved is not material
  • C Item involved is unknown
  • D Error does not affect the agreement of the trial balance
Correct Answer: Option C
Explanation:
Suspense accounts are used when your trial balance is out of balance or when you have an unidentified transaction. The suspense account is a general ledger account that acts as a holding account until the error is discovered or the unknown transaction is identified.

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