In accounting, the concept for whether information is presented the same way by different companies is
A) Timeliness
B) Representational faithfulness
C) Understandability
D) Comparability

Question

Quizplus · Accepted Answer

Comparability is the concept in accounting that ensures that information is presented in a uniform manner that allows for comparison between different companies. This is important for making informed financial decisions and analyzing performance across multiple companies. Timeliness, representational faithfulness, and understandability are also important concepts in accounting, but they do not specifically relate to the consistency of information between different companies.

In Accounting, the Concept for Whether Information Is Presented the Same