Question:

The need for codification is for :

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Codification helps in organizing data systematically using codes.
  • easy processing of data and keeping the records.
  • generation of mnemonic codes.
  • to secure accounting reports.
  • the encryption of data.
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The Correct Option is A

Solution and Explanation

Codification simplifies the accounting process by assigning codes to various heads of accounts. This helps in easier classification, faster data entry, and efficient retrieval of records.
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