What are the purposes of accounting codes? How are they used? What are some examples of codes used by manufacturing firms, accounting firms, and merchandising firms?© BrainMass Inc. brainmass.com June 4, 2020, 2:48 am ad1c9bdddf
- Accounting codes provide a system of order in the accounting system. Accounts are grouped into assets, liabilities, equity, revenue and expenses. By using a system of coding, the first digit identifies the type of account. For example, 1200 may be assigned to inventory. The ...
The solution discusses the purposes of accounting codes, how they are used, and provides examples of codes used by manufacturing forms, accounting firms, and merchandising firms.