A 'Suspense Account' is a: MCQ with Answer and Explanation

Question
A 'Suspense Account' is a:
A. Temporary account
B. Personal account
C. Real account
D. Nominal account
Answer: Option A
Solution (By JKSSB Mock Tests)
Suspense account is a temporary account opened to make trial balance agree.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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Practice More Accountancy and Book Keeping Questions

Question #1
The audit of a company's accounts is conducted by:
A. Cost auditor
B. Internal auditor
C. Government auditor
D. Statutory auditor appointed by shareholders
Discuss
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Correct Answer: Option D

Explanation:
Statutory audit is carried out by an independent auditor appointed by the shareholders.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #2
A: Vouching is the backbone of auditing. R: Vouching verifies the authenticity and accuracy of transactions. Choose the correct option.
A. Both A and R are true but R is NOT the correct explanation of A
B. A is false but R is true
C. Both A and R are true and R is the correct explanation of A
D. A is true but R is false
Discuss
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Correct Answer: Option C

Explanation:
Vouching is considered the backbone of auditing because it provides the primary evidence for the transactions recorded. It verifies authenticity by checking supporting documents. R correctly explains why it is the backbone.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #3
Under the 'Cash Basis' of accounting, outstanding expenses are:
A. Not recorded
B. Recorded as income
C. Recorded as asset
D. Recorded as liability
Discuss
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Correct Answer: Option A

Explanation:
Cash basis only records cash transactions, so outstanding expenses are ignored.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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