Changing from straight line to reducing balance depreciation in one year, then back to straight line in the next, and then back again to reducing balance, is a violation of the qualitative characteristic of:
A) relevance.
B) materiality.
C) comparability.
D) timeliness.

Question

Quizplus · Accepted Answer

Changing depreciation methods frequently hinders comparability of financial information over time. Users of financial statements rely on consistent and relevant information to make informed decisions. Materiality, relevance, and timeliness are not directly affected by changes in depreciation methods.

Changing from Straight Line to Reducing Balance Depreciation in One