Answer to Question #79832 in Finance for Hugh Heron

Question

1)Describe a process that could be used for collating, coding, and classifying accounts data in preparation for processing.

2)Why might it be necessary to consolidate and/or convert financial data to allow it to be analysed in accordance with organisational requirements

3)Explain how data might be consolidated or converted to allow it to be analysed.

Answer 1

1) Classification of economic objects contributes to their systematization, more in-depth study and creation of uniform classifiers of homogeneous objects for different enterprises. Classification is the basis for encoding information.
After data collection, the method of converting raw data into meaningful assertion is used. This method includes data processing, analysis, interpretation, and data representation. The processing or reduction of data basically involves various manipulations that are used to prepare data for analysis. The process (manipulation) can be either manual or electronic. This process contains editing, categorization of open questions, coding, computerization, as well as the preparation of tables and diagrams.

2) Any company can consist organizationally of many directions and departments. In addition, the company may have regional and production units in different regions of the country so abroad. Each such division has its own production and financial processes, financial and internal reporting. To obtain a unified business information system, the company consolidates data.

3) The initial stage in the implementation of any analytical task or project is the stage of data consolidation. The basis of this process is the collection and organization of data storage in a form optimal for storing the point of processing them on a certain analytical platform or solving a specific analytical problem.