Under the comparability principle,financial statements should,as far as possible,be:
A)comparable from one period to the next.
B)comparable with foreign businesses.
C)comparable from business to business.
D)both A and C

Question

Quizplus · Accepted Answer

The comparability principle states that financial statements should be comparable from one period to the next and from business to business. Therefore, option D - both A and C - is the correct choice. Option B - comparable with foreign businesses - is not entirely accurate as comparability is mainly concerned with consistency and uniformity in financial reporting within the same industry and geographical location.

Under the Comparability Principle,financial Statements Should,as Far as Possible,be