We can compare income of the current period with income of a previous period to determine whether the operating results are improving or declining:
A)Only if each accounting period covered is a full year.
B)Only if the same accountant prepares the income statement each period.
C)Only if the accounting periods are equal in length.
D)Only if a manual accounting system is used in both periods.

Question

Quizplus · Accepted Answer

In order to accurately compare operating results, the accounting periods being compared should be of equal length. This allows for an apples-to-apples comparison of income from one period to the next. The other options (A, B, and D) are not necessary for making this type of comparison.

We Can Compare Income of the Current Period with Income