Which statement best explains the meaning of "comparability" in financial reporting?
A)Financial information that is available quickly to financial statement users.
B)Financial information that can be objectively confirmed by another person.
C)Financial reports that are comprehendible to the users of such reports.
D)Financial statement preparers using consistent accounting policies year over year.

Question

Quizplus · Accepted Answer

Comparability in financial reporting refers to the consistency in the application of accounting policies over time. This allows users of financial statements to compare the financial statements of different periods and make meaningful conclusions about a company's financial performance and positions.

Which Statement Best Explains the Meaning of "Comparability" in Financial