Suspense Account (Noun)
Meaning
An account used temporarily to carry doubtful receipts and disbursements or discrepancies pending their analysis and permanent classification.
Classification
Nouns denoting possession and transfer of possession.
Examples
- The company's accountant used a suspense account to hold the disputed payment from the customer until the issue was resolved.
- After the audit, several transactions were moved to the suspense account for further investigation and verification.
- The auditor discovered a large discrepancy in the company's accounts and temporarily placed the amount in a suspense account.
- The accounting department reviewed the transactions in the suspense account on a monthly basis to ensure that all issues were resolved.
- The financial controller authorized the transfer of the unknown deposit from the suspense account to the revenue account after verifying its legitimacy.