Question : Grouping of Accounts means the classification of data from -
Option 1: Assets, Capital, and Liabilities
Option 2: Assets, Capital, Liabilities, Revenues & Expenses
Option 3: Assets, Owners equity, Revenue & Expenses
Option 4: Capital, Liabilities, Revenues, & Expenses
Correct Answer: Assets, Capital, Liabilities, Revenues & Expenses
Solution :
Accounts are categorised into main, minor, and sub-head categories and given codes after being assigned, and then these groups and codes are entered into the computer system. A systematic division of accounts is necessary for a thorough codification.
Your funds are arranged according to the chart of accounts into five categories: assets, liabilities, equity, revenue, and costs.
Hence the correct answer is option 2.
