What is meant by comparability when discussing financial accounting information?
A) Information has predictive or confirmatory 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 the ability to compare financial information across different companies or time periods. This requires that information be measured and reported in a similar fashion, which ensures consistency and helps users make meaningful comparisons. Options A, B, and D refer to other qualities of financial information, but do not specifically relate to comparability.

What Is Meant by Comparability When Discussing Financial Accounting Information