Financial Accounting Theory And Practice Questions 2022

Running head: FINANCIAL ACCOUNTING THEORY AND PRACTICE
Financial accounting theory and practice
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1FINANCIAL ACCOUNTING THEORY AND PRACTICE
Table of Contents
Question 1........................................................................................................................................2
Question 2........................................................................................................................................3
Question 3........................................................................................................................................4
Question 4........................................................................................................................................5
Reference and bibliography.............................................................................................................8

2FINANCIAL ACCOUNTING THEORY AND PRACTICE
Question 1
Three phases of blockchain technology
Since the year 2009, blockchain is evolved through 3 phases – blockchain 1.0, blockchain
2.0 and blockchain 3.0. Phase of blockchain 1.0 was completely focused on cryptocurrency
trading. Different functions including transfer of digital money, payment and remittance includes
new ecosystem that is internet of money. Blockchain 2.0 revolves around similar kind of trading
but it covers wider scope regarding financial appliances. These types of applications include
smart property, derivatives, ownership of digital asset. For expansion of trading that is ranged
from simple digital currency to wide variety of the products, new kind of application known as
smart contract had been initiated under 2nd generation of the blockchain (Dai & Vasarhelyi,
2017). Computer programs that is operated under blockchain are considered as smart contracts
based on blackchain is verified, executed and enforced autonomously under contract terms.
Smart contract allows encoding of the situations and rules those are agreed upon by different
trading parties. Further, these contracts execute the tasks those are pre-specified autonomously or
settle the contract through verifying the changing circumstances along with the embedded rules
of the contract. Further, the blockchain system is expanded beyond the business and financial
applications through blockchain 3.0. Voting systems, attestation services, products of cloud
storage and even the government administration could dramatically be transformed towards self-
managing, decentralized and monitoring systems. Further, the IoT technology that is the novel
paradigm where pervasive presence are able to interact with each other involves different objects
or things like tags, RFID (radio frequency identification) mobile phones and actuators (Dai &
Vasarhelyi, 2017).