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When does the Suspense Account carry a balance to the next accounting year?

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Question

When does the Suspense Account carry a balance to the next accounting year?

Options

  • Always

  • Never

  • Only if errors remain

  • On the accountant’s wish

MCQ
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Solution

Never

Explanation:

The suspense account must have a zero balance at the end of the accounting year; it is never carried forward.

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