Comparability means that companies should use the same accounting rules from period to period.

Name: Comparability means that companies should use the same accounting rules from period to period.
Brand: Quizplus
Rating: 4.8 (40 reviews)

Question

Quizplus · Accepted Answer

Comparability refers to the ability to compare financial statements of different companies because they use the same accounting principles, not necessarily the consistency of using the same accounting rules by one company over different periods.

Comparability Means That Companies Should Use the Same Accounting Rules