The Conceptual Framework states that an important implication of the qualitative characteristic of comparability is that:
A) it will be used to assess the representational faithfulness of the financial reports.
B) users will be informed of the accounting policies used in the preparation of the financial reports.
C) it will be used to predict outcomes of past, present or future events.
D) if there is a choice of accounting methods one method should be chosen and then applied throughout the life of the entity.

Question

Quizplus · Accepted Answer

The qualitative characteristic of comparability requires that users of financial reports be informed of the accounting policies used in their preparation. This helps users to compare information across different entities and make informed decisions. The other options, while important, are not directly related to the concept of comparability.

The Conceptual Framework States That an Important Implication of the Qualitative