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Question : Statement 1: For efficient analysis and interpretation, the financial accounting data is categorised and codified.
Statement 2: The accounts are categorised according to their nature.

Option 1: Both the statements are true

Option 2: Both the statements are false

Option 3: Statement 1 is true and statement 2 is false

Option 4: Statement 1 is false and statement 2 is true


Team Careers360 14th Jan, 2024
Answer (1)
Team Careers360 25th Jan, 2024

Correct Answer: Both the statements are true


Solution : For efficient analysis and interpretation, the financial accounting data is categorised and codified. The accounts are categorised according to their nature. The codification accounts make account identification simple. Hence, the correct option is 1.

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