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Question : Codification of accounts leads to ________.

Option 1: grouping of forms

Option 2: grouping of accounts

Option 3: grouping of sub heads

Option 4: None of these


Team Careers360 1st Jan, 2024
Answer (1)
Team Careers360 12th Jan, 2024

Correct Answer: grouping of accounts


Solution : The coding scheme of Account-heads should be such that it leads to the grouping of accounts at various levels so as to generate a Position Statement and Statement of Profit and Loss. Hence, the correct option is 2.

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