Question

An article suggests: A monumental change is emerging in accounting: the movement away from the decades-old method of periodic financial statement reporting and its lengthy closing process, and toward issuing financial statements on a real-time, updated basis … real-time financial reporting provides financial information on a daily basis. Current technology allows for financial events to be identified, measured, recorded, and reported electronically, with no paper documentation. (Source: "Real-Time Accounting," The CPA Journal, April 2005). Required: Using the information from the article above, answer the following questions in the left column using the dropdowns in the right column.

Answer 1

Answer:

Conceptual framework

The modern world is an OLRT (On-Line Real Time) world. The days of prolonged waiting for a report on the performance and financial position of a business are past. Time is money and time is limited. Information should be available as events occur because one event can mean the difference between success and failure.

The problem poses three questions and expects answers. The answers to all three questions are in the affirmative:

Financial information would be more useful, more relevant and more reliable in an OLRT electronic, paperless world