Comparability, as a qualitative characteristic of useful information, calls for consistency in the application of accounting policy choice.

Question

Quizplus · Accepted Answer

Comparability means that information can be compared over time or across different entities. This requires consistency in the application of accounting policies, so that similar transactions are accounted for in the same way. Therefore, the statement is true.

Comparability, as a Qualitative Characteristic of Useful Information, Calls for Consistency