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: 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.