Question

Write the code name (Sequential, Mnemonic, Block) of the following: 

Hint:

Mnemonic codes are often used in accounting to make it easier to identify and remember the names of accounts.

Answer 1

Step 1: Understanding the Code Types. 
- Sequential Code: In this system, the codes are assigned sequentially based on the order of occurrence or creation. Each item gets a unique number in a sequence. 
- Mnemonic Code: This system uses codes that are easy to remember, often based on a word or abbreviation that is directly related to the item being coded. 
- Block Code: A block of numbers or characters is reserved for certain categories, allowing each category to have its unique range of codes. This method is often used to categorize related items.
Step 2: Analysis of the Codes: 
- SLR for Salary Account is a mnemonic code because it is an abbreviation of the name and easy to remember. 
- BOD for Bank Overdraft is also a mnemonic code, derived from the first letters of the name of the account. 
Step 3: Conclusion. 
Both codes SLR and BOD are examples of Mnemonic Codes, as they are abbreviations of the account names.