What is meant by comparability when discussing financial accounting information?
A) Information has predictive or feedback value.
B) Information is reasonably free from error.
C) Information that is measured and reported in a similar fashion across companies.
D) Information is timely.

Question

Quizplus · Accepted Answer

Comparability refers to information that is measured and reported in a similar fashion across companies. This allows for easier comparisons between companies and makes financial statements more useful to users. Options A, B, and D are not related to comparability.

What Is Meant by Comparability When Discussing Financial Accounting Information