Question

If a suspense account still has a balance at the end of the year, it indicates:

Options

• All errors have been found and rectified

• Some errors are yet to be corrected

• A profit is made

• Bank reconciliation is complete

Answer 1

Some errors are yet to be corrected

Explanation:

Suspense accounts should become zero once all one-sided errors are found and fixed. A closing balance means some errors are still undiscovered.