Suspense accounts resolve trial balance imbalances

Steps:

• Review the trial balance at year-end to check if debits equal credits.
• If totals disagree, identify the difference as a temporary imbalance.
• Open a suspense account to post the difference, balancing the trial balance immediately.
• Investigate and correct errors later, clearing the suspense account.

Why B is correct:

• A suspense account is defined in accounting as a temporary holding account used specifically when the trial balance does not agree, allowing financial statements to proceed while errors are traced.

Why the others are wrong:

• A: Suspense accounts are created on purpose when needed, not omitted from ledgers.
• C: Errors of commission (e.g., wrong account postings) are corrected directly in affected accounts, without needing a suspense account.
• D: Suspense accounts handle known imbalances, not prevent or ensure absence of errors.

Final answer: B