“IT” essentially scrambles the information to make its interpretation extremely difficult (almost impossible) And it also ensures security of data even if it lands in the wrong hands, because the receiver of data will not be able to decode and interpret it.
In the above line, “IT” stands for:
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → Encryption
The line describes a security feature of accounting software: data is scrambled so that anyone who gets hold of it without the key cannot read it. That is encryption, provided by the software’s data vault.
Why the other options are incorrect
Option (2) Data Audit — Incorrect. A data audit shows who has made what changes in the original data, so that responsibility can be fixed. It does not scramble anything.
Option (3) Labels — Incorrect. Labels are text entries that name the rows and columns of a worksheet. They play no part in protecting data.
Option (4) IF Functions — Incorrect. An IF function returns one result or another depending on a test. It has nothing to do with security.
NCERT (2026-27 edition):
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