Which of the following statements is not true?
A) Comparability means using the same accounting principles from year to year within a company.
B) Faithful representation is the quality of information that gives assurance that it is free from error.
C) Relevant accounting information must be capable of making a difference in the decision.
D) The primary objective of financial reporting is to provide financial information that is useful to investors and creditors for making decision.

Question

Quizplus · Accepted Answer

Comparability refers to the ability to compare financial statements of different companies, not just within the same company over time. The correct term for using the same accounting principles from year to year within a company is "consistency."

Which of the Following Statements Is Not True