Which of the following would affect the comparability of accounting information for a given company from one accounting period to the next?

I. Change in accounting principles
II. Disposition of segment of business
III. Restructuring expenses
IV. Change in auditors

A)I and II
B)I and III
C)I, II, and III
D)I, III, and IV

Question

Which of the following would affect the comparability of accounting information for a given company from one accounting period to the next?

I. Change in accounting principles
II. Disposition of segment of business
III. Restructuring expenses
IV. Change in auditors

A)I and II
B)I and III
C)I, II, and III
D)I, III, and IV

Quizplus · Accepted Answer

Changes in accounting principles, disposition of a segment of business, and restructuring expenses can all affect the comparability of accounting information across different periods by altering the basis of accounting or the structure of the company's operations. Changing auditors does not inherently affect the comparability of the financial statements themselves, as it does not change how transactions are recorded or reported.

Which of the Following Would Affect the Comparability of Accounting