What is a Suspense Account? - Definition & Examples

Instructions:

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question 1 of 3

When a payment is received and it is unclear as to which customer account to apply it towards, which of these is part of the correct journal entry?

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1. When a payable is incurred and it is uncertain as to which company department to charge it to, which of these is part of the correct journal entry?

2. Which of these situations requires the use of a suspense account?

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About This Quiz & Worksheet

Using the worksheet and quiz, you can determine how much you know about suspense accounts. Situations for the use of this type of account is a topic covered on the quiz.

Quiz & Worksheet Goals

The goal of these materials is to check your knowledge of:

  • Situation that would require a suspense account
  • How to make a journal entry for a payment received that's unclear as to which customer account it applies to
  • Type of account to use when a client doesn't know what to do with some cash for a few days

Skills Practiced

  • Information recall - access the knowledge you have gained about the ideal account brokerage firms should use for clients who don't know what they should do with the cash
  • Reading comprehension - ensure that you draw the most important information from the lesson on suspense accounts
  • Interpreting information - verify that you can read information about how to write journal entries for this type of account and interpret it correctly

Additional Learning

If you'd like to review more, access the lesson called What Is a Suspense Account? - Definition & Examples. You may complete the following goals:

  • Identify the purpose of a suspense account
  • See examples of when suspense accounts are used
  • Review journal entries for these accounts
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