Intracompany comparability would be violated if
A)a company used LIFO as its inventory cost method while other companies in the same industry used FIFO
B)a company changed its bad debts expense estimate from one percent to two percent
C)a bank did not classify its assets as current assets and noncurrent assets
D)a company expenses all expenditures of less than $500 even if the expenditures result in probable future economic benefit

Question

Quizplus · Accepted Answer

Changing the bad debts expense estimate affects the consistency of financial reporting within the same company over time, thus violating intracompany comparability.

Intracompany Comparability Would Be Violated If