Accounting Multiple Choice Question – 23 March 2020

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

Accounting

If a trial balance does not balance, which of the following accounts should be opened?

Select ONE answer:

  1. A suspense account.
  2. A control account.
  3. A provision account.
  4. A liability account.

 

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 1

  1. Correct – The only purpose served by a suspense account is to force an unbalanced trial balance to balance by recording the amount of the imbalance in the suspense account until such time as the underlying error(s) can be located. At least initially, there is no reason to record this amount in any other account. Some or all of the amount of the imbalance may be recorded in a control account, a provision account or a liability account, but also may be recorded in other accounts, for example, asset or expense accounts, once the reason(s) for the imbalance has/have been discovered.
  2. Not correct
  3. Not correct
  4. Not correct

 

 

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Author: stuart001uk2014

Referral marketing, business, economics and accounting s​pecialist & corporate mentor

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