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