Comparability problems arise because
A) firms may use different generally accepted accounting principles.
B) inflation may affect firms differently due to accounting conventions used.
C) financial analysts do not know how to compare financial statements.
D) firms may use different generally accepted accounting principles, and inflation may affect firms differently due to accounting conventions used.
E) firms may use different generally accepted accounting principles, and financial analysts do not know how to compare financial statements.

Question

Quizplus · Accepted Answer

Comparability problems in financial statements can arise because firms may use different accounting principles and because inflation can affect firms differently, depending on the accounting conventions they use. This makes it challenging to compare financial statements accurately across different companies.

Comparability Problems Arise Because