Which of the following should be considered when designing a coding scheme for a chart of accounts?
A) Which internal reports will be required?
B) Is there a need for segmental reporting?
C) Both a. and b.
D) Neither a. nor b.

Question

Quizplus · Accepted Answer

Both internal reports and segmental reporting should be considered when designing a coding scheme for a chart of accounts. Internal reports are critical for monitoring business performance and making informed decisions. Segmental reporting provides more detailed insights on different aspects of the business, such as product lines, customer groups, or geographic regions. A well-designed coding scheme should accommodate both types of reporting to enhance the usefulness and relevance of financial information.

Which of the Following Should Be Considered When Designing a Coding