Final answer:
Influences on China's accounting system include its economic shift towards open trade and flexible production, its global manufacturing dominance, environmental concerns tied to growth, and the complexities of international trade and currency exchange.
Step-by-step explanation:
The factor that influences the accounting system and accounting output in China can be understood by looking at several aspects. The transition of China's economy from a centrally planned system to one that embraces more open trade and a flexible production structure has been a significant influence. This economic reform has led to a mix of capitalistic elements driving production, a surge in private enterprise, and an increase in international investment. China has used its positioning in the global market to become a leading manufacturing hub, offering competitive advantages such as a large, educated labor force and government control over business operations, which allows for the production of goods at lower costs.
As China's purchasing power grows, there is also a rising concern for environmental sustainability, which could in time affect business practices and regulations, potentially impacting the accounting standards and financial reporting. Furthermore, the complexities involved in international trade, particularly for firms dealing with foreign exchange markets due to different currencies for costs and revenues, require robust accounting systems to manage financial activities accurately.