What does suspense account mean?
Definitions for suspense account
sus·pense ac·count
This dictionary definitions page includes all the possible meanings, example usage and translations of the word suspense account.
Princeton's WordNet
suspense accountnoun
an account used temporarily to carry doubtful receipts and disbursements or discrepancies pending their analysis and permanent classification
Wikipedia
Suspense account
A suspense account is an account used temporarily to carry doubtful entries and discrepancies pending their analysis and permanent classification. It can be a repository for monetary transactions (cash receipts, cash disbursements and journal entries) entered with invalid account numbers. The account specified may not exist, or it may be deleted/frozen. If one of these conditions applies, the transaction should be directed to a suspense account. In branchless banking (BB) - banking through mobile for unbanked - these accounts are used for 'money-in-transit'. For example, sender sends payment from US ACH account to a BB mobile number in Japan. The customer receives an alert on their mobile to withdraw this money from a BB agent. Until they withdraw, the remittance stays in a suspense account, earning the financial institute or the BB enabler float/interest on that money. When customer withdrawal is completed, the money moves from the suspense account to the account of the agent who facilitated the cash withdrawal. A suspense account is an account in the general ledger in which amounts are temporarily recorded. A suspense account is used when the proper account cannot be determined at the time the transaction is recorded. When the proper account is determined, the amount will be moved from the suspense account to the proper account. It can also be used when there is a difference between the debit and credit side of a closing or trial balance, as a holding area until the reason for error is located and corrected. Suspense accounts should be cleared at some point, because they are for temporary use. Suspense accounts are a control risk.
ChatGPT
suspense account
A suspense account is a temporary account used in bookkeeping and accounting when there is uncertainty about the appropriate account in which an amount should be recorded. The sum is initially recorded in the suspense account, and then moved to the correct account once the uncertainty is resolved. This ensures that all transactions are recorded in a timely manner, even when some details may initially be unclear, and helps to prevent discrepancies in financial reporting.
Wikidata
Suspense account
A suspense account is an account used temporarily to carry doubtful receipts and disbursements or discrepancies pending their analysis and permanent classification. It can be a repository for monetary transactions entered with invalid account numbers. The account specified may not exist, or it may be deleted/frozen. If one of these conditions exist, the transaction should be directed to a suspense account. In branchless banking - banking through mobile for unbanked - these accounts are used for 'money-in-transit'. For example, sender sends payment from US ACH account to a BB mobile number in Japan. The customer receives an alert on their mobile to withdraw this money from any BB agent. Until they withdraw, the remittance stays in the suspense account, earning the financial institute or the BB enabler float/interest on that money. When customer withdrawal completes, the money moves from suspense account to the agent's account who facilitated the cash withdrawal. A suspense account is an account in the general ledger in which amounts are temporarily recorded. The suspense account is used because the proper account could not be determined at the time that the transaction was recorded. When the proper account is determined, the amount will be moved from the suspense account to the proper account.
Matched Categories
Numerology
Chaldean Numerology
The numerical value of suspense account in Chaldean Numerology is: 4
Pythagorean Numerology
The numerical value of suspense account in Pythagorean Numerology is: 6
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"suspense account." Definitions.net. STANDS4 LLC, 2024. Web. 25 Apr. 2024. <https://www.definitions.net/definition/suspense+account>.
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