What term describes a temporary account used to temporarily hold unbalanced debit and credit amounts until errors are located and reconciled?

Explanation

• A Suspense Account is a temporary ledger account created to record differences when total debits and credits in a trial balance do not match.
• Once accounting errors are identified and corrected via rectification entries, the balance in the suspense account returns to zero.
• It is also used when cash is received from an unknown source pending identification.