Accounting Theory and Emerging New Technology Blockchain

Which of the following is true about blockchain technology ?

• It has no impact on the accounting sector

• It is only applicable in the financial tech industry

• It is designed for secure, decentralised, and transparent record keeping

• It is primarily used for social media management

What are the challenges accountants might face due to blockchain technology?

• Blockchain will eliminate the need for professional judgement in accounting

• Blockchain technology will reduce the speed of transactions

• Accountants will no longer be needed in the industry

• Roles of accountants might change and they may need to develop new skills

What is one of the opportunities of blockchain technology ?

• • Reduction in transparency and trust in transactions

• • Increased energy usage for businesses

• • Limiting new business ideas

• Efficiency boost and trustworthy transactions

What impact does Blockchain have on transaction efficiency

• Makes transactions faster and reduces mistakes

• Increases the likelihood of errors in transactions

• • Slows down transaction processing time

• • Has no impact on transaction speed or accuracy

What is challenges of blockchain that associated with blockchain technology

• • Blockchain technology is immune to cyberattacks

• • Blockchain technology eliminates all security risks

• • There are still risks like cyberattacks and potential flaws in smart contracts

• Smart contracts are flawless and secure

What is a key feature of a permissioned blockchain framework?

• Allows unrestricted access to anyone

• • Shares sensitive financial data openly

• Requires no authentication for data access

• • Restricts access to authorized participants only

How does the immutable ledger framework enhance security in blockchain?

• • Allows easy data manipulation

• • Maintains a tamper-resistant ledger

• • Emphasizes data volatility

• • Does not prioritize data integrity

What does the security & privacy framework help weigh in financial accounting?

• • The need for openness versus controlled access

• • The importance of data privacy against the need for transparency

• • The trade-off between security and privacy