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Question
Why is a suspense account created in accounting?
Options
To earn interest
To store permanent assets
To temporarily hold differences when the trial balance does not tally
To record all business incomes
MCQ
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Solution
To temporarily hold differences when the trial balance does not tally
Explanation:
A suspense account is opened only to temporarily hold unexplained differences or unknown entries when the trial balance doesn't agree, not for permanent records.
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