Which of the following would be most affected by financial statements being prepared under different accounting principles?
A) Reduced comparability.
B) Reduced reliability.
C) Increased complexity.
D) Inaccurate asset valuations.

Question

Quizplus · Accepted Answer

If financial statements are prepared under different accounting principles, it will result in reduced comparability. Comparability refers to the ability to compare the financial statements of one company with that of another company, or of the same company over different time periods. When financial statements are prepared under different accounting principles, it becomes difficult to make meaningful comparisons.

Which of the Following Would Be Most Affected by Financial