If an investor can use accounting information for two different companies to evaluate the types and amounts of expenses,the information is said to have the quality of

Question

Quizplus · Accepted Answer

Comparability refers to the ability to compare financial information of different companies in order to make informed decisions. In this scenario, the investor is using the accounting information from two different companies to evaluate expenses, indicating comparability. Consistency refers to the application of accounting policies and procedures consistently over time, neutrality refers to the unbiased presentation of financial information, and materiality refers to the significance of an item or event in financial reporting.

If an Investor Can Use Accounting Information for Two Different