CUET Preparation Today
Which of the following is the main objective of a particular Method of Codification? |
Proper grouping of accounts Ensures an identification mark Easy to understand, cryptic, and leads to grouping of accounts All of the above |
Proper grouping of accounts |
The correct answer is option 1- Proper grouping of accounts. The coding scheme of Account-heads should be such that it leads to grouping of accounts at various levels so as to generate Position Statement (Balance Sheet) and Statement of Profit and Loss (Profit-Loss Account). |
