The qualitative characteristic of accounting information that requires items that are basically the same to be treated in the same manner is:
A) understandability.
B) relevance.
C) comparability.
D) timeliness.

Question

Quizplus · Accepted Answer

The qualitative characteristic of comparability requires items that are basically the same to be treated in the same manner, so that users can compare financial information across different reporting periods and between different entities. Understandability relates to the clarity and comprehensibility of financial information, relevance relates to the usefulness of financial information in decision-making, and timeliness relates to the importance of receiving financial information in a timely manner.

The Qualitative Characteristic of Accounting Information That Requires Items That