Dax is responsible for preparing financial statements for his employer. Each statement is reviewed against previous statements and against top competitors. Which Generally Accepted Accounting Principle (GAAP) standard does this best demonstrate?
A) relevant
B) factual
C) measurable
D) comparable
E) reliable

Question

Quizplus · Accepted Answer

The principle of comparability allows users to analyze and recognize similarities and differences among items and events, which is demonstrated by comparing financial statements against previous periods and competitors.

Dax Is Responsible for Preparing Financial Statements for His Employer