ACCA Strategic Professional · Strategic Business Leader · Finance transformation
Meridian Logistics plans to use blockchain-based distributed ledger technology for intercompany settlements across its subsidiaries. Which benefit is most plausibly linked to this technology in finance?
The plausible benefit is a shared, tamper-resistant record of transactions that reduces reconciliations between group entities. Blockchain does not guarantee that data entered at source is accurate, cannot remove all fraud risk, and does not remove the need to prepare financial statements.
- AA shared, tamper-resistant record that reduces the need for reconciliations between partiesCorrect
- BAutomatic elimination of all fraud risk in the group
- CRemoval of the requirement to prepare financial statements
- DGuaranteed accuracy of data entered at the source
Explanation
A distributed ledger gives all parties a shared, hard-to-alter record of transactions, reducing reconciliation effort. It does not stop incorrect data being entered initially, remove all fraud risk or replace reporting obligations.
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