All entities using the same terms to describe the elements of financial statements is an example of the:
A)timeliness principle.
B)comparability principle.
C)materiality principle.
D)reliability principle.

Question

Quizplus · Accepted Answer

The comparability principle requires that financial statements of different entities can be compared. By using the same terms to describe the elements of financial statements, entities are making it easier for stakeholders to compare their financial statements to other entities. This enhances the overall comparability of financial statements.

All Entities Using the Same Terms to Describe the Elements