________ means that the accounting information for a company must be prepared in such a way as to be capable of being compared with information from other companies in the same period and consistent with similar information for that company in previous periods.
A) Verifiability
B) Timeliness
C) Understandability
D) Comparability

Question

Quizplus · Accepted Answer

Comparability is the ability to compare financial information of a company with that of other companies in the same period and with its own financial information for previous periods. This enhances the usefulness of financial information and helps stakeholders make informed decisions. Verifiability refers to the ability to verify the accuracy of accounting information, timeliness refers to the relevance of financial information for decision-making, and understandability refers to the clarity and ease of comprehension of financial information.

________ Means That the Accounting Information for a Company Must