Lecture 12 Flashcards
(4 cards)
Explain what XBRL is
Different accounting systems and terminology are used in different countries worldwide. XBRL is used to create one accounting language that everyone in the world can understand. This makes sales and mergers of companies sold to overseas inventors easier to reads the accounts and understand the records.
For example, countries may use the terminology sundry debtors, accounts receivables or debtors to describe customers who have received the product but have not paid yet.
Identify the benefits and applications of ERP systems
- Transparency
- Accessibility
- Regulated reporting
- Automation
- Data analysis
- Unique database
Define distributed ledger technique
Distributed ledger technology (DLT) is a digital system for recording the transaction of assets in which the transactions and their details are recorded in multiple places at the same time.
Identify the application of blockchain technology in accounting
A blockchain is a chain of blocks where one block contains information. The technique is intended to timestamp digital documents so that it is possible to backdate them or temper them. The purpose of blockchain is to solve the double recording problem
Step 1) some person requests a transaction. The transaction could be involved cryptocurrency, contracts, records, or other information
Step 2) the requested is broadcasted to a P2P network with the help of nodes
Step 3) the network of nodes validates the transaction and the user’s status with the help of known algorithms
Step 4) once the transaction is complete, the new block is then added to the existing blockchain, in such a way that is permanent and unalterable
