Financial reports that allow users to identify the similarities and differences among reported items are said to demonstrate
A) timeliness
B) understandability
C) comparability
D) verifiability

Question

Quizplus · Accepted Answer

Comparability allows users to identify similarities and differences among reported items, making it easier to understand and analyze financial information. Timeliness refers to the timely issuance of financial reports, understandability refers to the ease of understanding the financial information presented, and verifiability refers to the ability to verify the accuracy of financial information. While all of these qualities are important in financial reporting, only comparability directly addresses the ability to identify similarities and differences among reported items.

Financial Reports That Allow Users to Identify the Similarities and Differences