The suspense account is used to correct book-keeping error where the
- amount involved is quite significant
- item involved is not material
-
item involved is unknown
- error does not affect the agreement of the trial balance
The correct answer is: C
Explanation
Suspense accounts are used when your trial balance is out of balance or when you have an unidentified transaction. The suspense account is a general ledger account that acts as a holding account until the error is discovered or the unknown transaction is identified.