Which type of accounting principle is concerned with the comparability of financial statements of different firms?
A)Input-oriented principles
B)Output-oriented principles
C)Constraining principles
D)Both a and c

Question

Quizplus · Accepted Answer

Output-oriented principles, such as comparability, are concerned with the quality of financial statements produced for external users. Comparability is important as it allows users to analyze and compare financial information across different companies. Input-oriented principles, on the other hand, focus on the process and procedures used to generate financial statements. Constraining principles refer to constraints on the preparation of financial statements, such as cost-benefit considerations. Choice D is incorrect as input-oriented principles and constraining principles are not directly related to comparability.

Which Type of Accounting Principle Is Concerned with the Comparability