Accounting Multiple Choice Question – 24 March 2020

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

Which of the following should be entered in a suspense account?

Select ONE answer:

  1. Miscellaneous expenses.
  2. Any difference between the debit and credit totals of the trial balance which cannot be immediately located pending further investigation.
  3. Bad debts recovered.
  4. None of the above.

 

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 2

  1. Not correct – Miscellaneous expenses should be entered in a Miscellaneous Expenses account, the total of which is then transferred to the profit and loss account.
  2. Correct
  3. Not correct – Bad debts recovered should be entered in a Bad Debts Recovered account, the total of which is then transferred to the profit and loss account.
  4. Not correct

 

 

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