CMA Intermediate · Financial Management and Business Data Analytics · Data Processing, Organisation, Cleaning and Validation
A company records revenue figures in two source systems. System A reports in rupees and System B reports in rupees lakh. Before merging, System B's figure for a branch is 12.5. What should the value be after transformation to match System A?
The value should be Rs 12,50,000. Since System B reports in lakh, each unit equals 1,00,000 rupees, so 12.5 lakh multiplied by 1,00,000 gives 12,50,000, putting both systems on the same unit of measurement before they are merged.
- A12,50,000Correct
- B1,25,000
- C1,250
- D12,500
Explanation
One lakh equals 1,00,000 rupees. So 12.5 lakh = 12.5 x 1,00,000 = 12,50,000 rupees. Check: 12,50,000 / 1,00,000 = 12.5. The value 1,25,000 results from treating 12.5 as 1.25 lakh, a decimal slip.
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