The comparability principle in accounting means that a company must perform strictly proper accounting only for items and transactions that are significant to the financial statements of a business.

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The comparability principle in accounting means that a company must use consistent accounting methods and practices from one period to the next, in order to ensure that financial information is comparable between different periods and between different companies. It does not necessarily mean that only significant items and transactions should be accounted for, as all transactions and items should be properly recorded in accordance with accounting standards and principles.

The Comparability Principle in Accounting Means That a Company Must