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Cambridge IGCSE Accounting practice

What is the primary purpose of a suspense account?

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At a glance

MCQ

Type

cambridge_mcq

Style

Topic

Correction of errors

Exam-style question

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What is the primary purpose of a suspense account?.

  1. A.To permanently hold transactions
  2. B.To temporarily hold unclassified transactions
  3. C.To record all profits
  4. D.To track liabilities

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Paper 2 structured question: Correction of errors

Paper 2Structured Written Paper2 marks

Description

Error in Sales Recording

The company needs to correct this error to ensure accurate financial reporting.

  1. a

    Explain the role of a suspense account in this situation.

    Aim for approximately 2 distinct marking points.

    [2]