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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.

  1. A12,50,000Correct
  2. B1,25,000
  3. C1,250
  4. 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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