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:

Profit Margin

A financial metric that calculates the percentage of revenue remaining after all expenses have been deducted from sales.

Sample Variances

A measure of dispersion that quantifies the spread of data points in a sample around the mean.

F-distributed

Refers to having a probability distribution known as the F-distribution, often used in the analysis of variance.

Chi-squared Variables

Random variables that follow a chi-squared distribution, often used in tests of statistical significance for categorical data.