Question

Suspense accounts used to post problem items not yet resolved must have the word "suspense" included in the title of the accounts and the records must be kept for ________.

A) 1 year
B) 2 years
C) 3 years
D) 4 years

Answer 1

Suspense accounts in accounting are used to temporarily hold and track unresolved transactions. The records for suspense accounts must be kept for 2 years.

Step-by-step explanation:

Suspense accounts in Accounting

Suspense accounts are temporary accounts used to post problem items that have not yet been resolved in accounting. They are used to temporarily hold and track unresolved transactions until they can be properly classified and recorded.

According to accounting principles, the records for suspense accounts must be kept for 2 years. This ensures that businesses have a record of all unresolved items and can properly investigate and resolve them within a reasonable timeframe.