US CMA Part 1 · Chapter 6 · Question 7 of 22
Which feature of blockchain technology is most relevant to the reliability of accounting records?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Transactions are recorded on a distributed ledger, and once validated, blocks are extremely difficult to alter without detection
Explanation
Blockchain maintains a shared, distributed ledger in which each block is cryptographically linked to the previous one, making recorded transactions effectively immutable. However, it does not guarantee that the underlying transaction was valid or that the assets exist.
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