RKH Corporation wants to design its chart of accounts to facilitate the use of information technology in its closing entries. Which coding system should RKH use?

Question

Quizplus · Accepted Answer

A block coding system allows for the grouping of accounts into categories or sections, which can make it easier to use with information technology. This system can also facilitate the sorting and analysis of financial data. Mnemonic coding may not be efficient for electronic processing, sequential coding may lack flexibility and random coding may not provide structure for reporting and analysis.

RKH Corporation Wants to Design Its Chart of Accounts to Facilitate