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WAEC Financial Accounting 2021 Question 48

Question 48

Correction of Errors and Suspense Account

Suspense account is used in the correction of

  1. A.all errors in the trial balance.
  2. B.errors that affect the agreement of a trial balance.
  3. C.errors that do not affect the agreement of a trial balance.
  4. D.errors that affect the accuracy of the net profit.
Show the answer and explanation

Answer: B (errors that affect the agreement of a trial balance.)

Explanation

A suspense account holds the difference caused by errors that stop the trial balance agreeing.