Which of the following statements about comparability is true?
A) A company has to use the same accounting methods in all parts of a company.
B) The same depreciation method should be employed for all assets of a company.
C) The same accounting methods must be used as those used by other companies in the industry.
D) None of the answers provided.

Question

Quizplus · Accepted Answer

Comparability in accounting refers to the ability to compare financial statements of different accounting periods and entities to understand trends and performance. It does not mandate the use of the same accounting methods within all parts of a company, for all assets, or to align with industry practices, as flexibility in accounting methods is allowed provided they are consistently applied and disclosed.

Which of the Following Statements About Comparability Is True