Why Has Corporate Financial Reporting in China Not Resembled Reporting

question 45

Multiple Choice

Why has corporate financial reporting in China not resembled reporting in Anglo-Saxon countries?

• A) There was a lack of distinction between business functions and social service functions in Chinese reporting entities.
• B) China has only recently become involved in international trade.
• C) The concept of accounting was only introduced to China recently and therefore it has not had time to develop properly.
• D) The 1960's Cultural Revolution eliminated the requirements that Chinese corporations provide information on business operations.

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Definitions:

High Tide

The state of the tide when it is at its highest level, usually occurring twice in a 24-hour period.

Low Tide

The condition of the sea when it has reached its lowest level within the tidal cycle, often exposing areas that are submerged at high tide.

Earth's Rotation

The spinning of the Earth around its own axis, which results in day and night cycles.

Moon's Orbit

The path followed by the Moon as it revolves around the Earth, affected by the gravitational forces between the Earth and the Moon.