A temporary difference of bank occurs in only one account with the second figure stated, this is an error of
Question 1 Report
A temporary difference of bank occurs in only one account with the second figure stated, this is an error of
Answer Details
A temporary difference of bank occurring in only one account with the second figure stated is an error of the suspense account. A suspense account is used to temporarily hold transactions that cannot be properly classified to a specific account, either due to incomplete information or errors. Once the necessary information is obtained or errors are corrected, the transactions are moved from the suspense account to their appropriate accounts. Therefore, if a temporary difference of bank occurs in only one account with the second figure stated, it means that the transaction was not properly classified, and it should be moved to the appropriate account through the use of the suspense account.
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