What are the features of a suspense account?

A suspense account is a temporary holding account used in accounting to record transactions that require further investigation before being properly classified. Key features include its role in ensuring the accuracy of financial records by preventing misstatements, its use for unidentified receipts or payments, and the eventual need to clear the account by reallocating the amounts to the appropriate accounts once the discrepancies are resolved. Suspense accounts help maintain the integrity of financial reporting until all information is clarified.