Complexity in Accounting Systems

question 37

Multiple Choice

Complexity in accounting systems:

• A) can usually be justified on a cost- benefit basis
• B) is desirable if it reflects the complexity of the underlying business
• C) is necessary to manage the behavioral implications of the accounting system
• D) frequently generates costs of gathering and interpreting data that often exceed prospective benefits

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Definitions:

Cross Border Fund

An investment fund that has the capability to invest in financial assets across different countries.

Benchmark

A standard or point of reference against which things may be compared or assessed, particularly in the financial markets to measure the performance of stocks or funds.

Interest Rate Parity Theory

Interest Rate Parity Theory is an economic theory which suggests that the difference in interest rates between two countries is equal to the expected change in exchange rates between their currencies.

Exchange Rates

The rate at which one currency can be exchanged for another, influencing international trade and capital flow between countries.