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easyMCQCUET Accountancy 2025 22 May Shift 22026Accountancy
1 mark

Why is proper classification of data necessary in a growing business using a Computerised Accounting System?

  1. A
    To reduce the number of accounts
  2. B
    To maintain manual ledgers efficiently
  3. C
    To manage an increasing volume of transactions systematically
  4. D
    To eliminate the use of accounting equations

Solution & Step-by-step Explanation

As a business expands, the number and complexity of transactions expand exponentially. Proper classification through a structured chart of accounts and coding system is necessary to handle this large volume of data systematically, ensuring quick retrieval, accurate summary, and clean reporting.

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Why is proper classification of data necessary in a growing business using a Computerised Accounting System?
A
To reduce the number of accounts
B
To maintain manual ledgers efficiently
C
To manage an increasing volume of transactions systematically
D
To eliminate the use of accounting equations

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