Question 1
Correction of Errors and Suspense AccountA suspense account is used to
- A.agree the trial balance
- B.record sales
- C.record purchases
- D.correct errors
- E.prepare the Balance Sheet.
Show the answer and explanation
Answer: A (agree the trial balance)
Explanation
When a trial balance does not agree, the difference is put in a suspense account so it balances until the errors are found.