Financial information exhibits the characteristic of comparability when
A)expenses are reported as charges against revenue in the period in which they are paid.
B)accounting entities give accountable events the same accounting treatment from period to period.
C)extraordinary gains and losses are not included on the income statement.
D)accounting procedures are adopted which give a consistent rate of net income.

Question

Quizplus · Accepted Answer

Comparability refers to the consistent use of accounting methods and practices from period to period, and from one company to another. Choice B states that accounting entities give accountable events the same accounting treatment from period to period, which is the characteristic of comparability. The other choices do not accurately describe comparability.

Financial Information Exhibits the Characteristic of Comparability When