Question

What is the main importance of a suspense account during preparation of financial statements?

पर्याय

• Hides errors

• Allows statements to be prepared without waiting for error correction

• Increases profit

• Helps in tax calculation

Answer 1

Allows statements to be prepared without waiting for error correction

Explanation:

Suspense accounts help proceed with financial statement preparation by temporarily balancing the books even when errors exist, ensuring accuracy later.