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easyMCQCUET Accountancy2026Accountancy
1 mark

The method of Codification should be:

  1. A
    Easy to process data
  2. B
    An identification mark
  3. C
    Easy to understand, cryptic, and leads to grouping of accounts
  4. D
    Such that it leads to grouping of accounts

Solution & Step-by-step Explanation

A core design metric of a computerised accounting system codification structure is that it must explicitly lead to systematic categorization and grouping of accounts (asset, liability, revenue, expense) to generate financial reports easily.

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The method of Codification should be:
A
Easy to process data
B
An identification mark
C
Easy to understand, cryptic, and leads to grouping of accounts
D
Such that it leads to grouping of accounts

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