Question

The need for Codification is:

• A. The Encryption of data
• B. The Generation of mnemonic code
• C. To secure the accounts, reports etc
• D. Easy to process data, keeping proper records

Hint:

Codification is not about encryption; it is about systematic coding to simplify record-keeping and processing.

Answer 1

The Correct Option is D

Step 1: Meaning of Codification.
Codification in accounting means assigning numerical or alphanumerical codes to accounts and transactions.

Step 2: Objective.
It ensures: - Systematic classification of data. - Ease in identification, recording, and retrieval. - Accuracy in maintaining records.

Step 3: Correct choice.
Among the given options, the real purpose is to make data processing easy and ensure proper record-keeping.

Final Answer: \[ \boxed{\text{Easy to process data, keeping proper records}} \]