Changing from straight line to reducing balance depreciation in one year, then back to straight line in the next, and then back again to reducing balance, is a violation of which qualitative characteristic?
A) comparability.
B) relevance.
C) reliability.
D) timeliness.

Question

Quizplus · Accepted Answer

Changing depreciation methods on a regular basis makes it difficult to compare financial statements from year to year, which violates the comparability qualitative characteristic.

Changing from Straight Line to Reducing Balance Depreciation in One