What is meant by comparability when discussing financial accounting information
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9.What is meant by comparability when discussingfinancial accounting information?a.Information has predictive or feedback value.b.Information is reasonably free from error.c. Information that is measured and reported in asimilar fashion across companies.d. Information is timely. Show 10.Changing the method of inventory valuation should bereported in the financial statements under whatqualitative characteristic of accounting information? Get answer to your question and much more 11.Company A issuing its annual financial reports withinone month of the end of the year is an example ofwhich enhancing quality of accounting information? Get answer to your question and much more 12.Which of the following qualitative characteristics is(are) included in the 2018Conceptual Framework?
Get answer to your question and much more 13.AccordingtotheConceptualFramework,usefulness of providing information in financialstatements is subject to the constraint ofthea. Consistencyb. Materialityc. Reliabilityd. Balance between benefit and cost 14.Which of the following measurement attributes isnotcurrently used in practice? Get answer to your question and much more 15.The following statements pertain to the provisions ofConceptual Framework on the concepts of CapitalMaintenanceStatement 1: The principal difference between twoconcepts of capital maintenance is the treatment of theeffects of changes in the prices of assets and liability ofthe entity. Statement II: The selection of the appropriate conceptof capital by an entity should be based on the needs ofthe users of its financial statements.Statement III: The concept of capital maintenancechosen by an entity shall determine the accountingmodel used in the preparation of its financialstatements. a.Only statement I is falseb.Only statement II is falsec.Only statement III is falsed.None of the foregoing statements is false 34.What is meant by comparability when discussing financial accounting information?a.Information has predictive orfeedbackconfirmatoryvalue.b.Information is reasonably free from error.c.Information that is measured and reported in a similar fashion across companies.d.Information is timely.2 - 11 35.What is meant by consistency when discussing financial accounting information? 36.Which of the following is an ingredient of relevance?  37.Which of the following is an ingredient ofreliabilityfaithful representation? 38.Changing the method of inventory valuation should be reported in the financial statementsunder what qualitative characteristic of accounting information?a.Consistency.b.Verifiability.c.Timeliness.d.Comparability. 39.Company A issuing its annual financial reports within one month of the end of the year isan example of which ingredient ofprimaryfundamentalquality of accounting information? We have textbook solutions for you!The document you are viewing contains questions related to this textbook. Financial Accounting: The Impact on Decision Makers Norton/Porter Expert Verified Test Bank for Intermediate Accounting,FourThirteenth Edition40.What is the quality of information that enables users to better forecast future operations? 41.NeutralityRepresentationalfaithfulnessis an ingredient of whichprimaryfundamentalquality of information?
42.Decision makers vary widely in the types of decisions they make, the methods of decisionmaking they employ, the information they already possess or can obtain from othersources, and their ability to process information. Consequently, for information to be usefulthere must be a linkage between these users and the decisions they make. This link isIfthe FIFO inventory method was used last period, it should be used for the current andfollowingperiods because ofa.relevance.b.reliabilityneutrality.c.understandability.d.materialityconsistency. What is comparability in financial accounting?Comparability is the level of standardization of accounting information that allows the financial statements of multiple organizations to be compared to each other. This is a fundamental requirement of financial reporting that is needed by the users of financial statements.
Why is comparability of financial statements important?First, by facilitating benchmarking across firms, higher comparability ensures that investors can access more relevant peer and overall industry information. Second, it lowers investors' firm-specific information processing costs and thereby facilitates a more precise valuation of financial information.
What is an comparability?Comparability is the extent to which differences between statistics from different geographical areas, non-geographical domains, or over time, can be attributed to differences between the true values of the statistics.
Why is it important for accounting information to posses the quality of comparability?Comparability is an essential part of accounting information because it helps professionals differentiate and analyze financial reports that help make decisions. Comparability involves the process of evaluating one financial period with another to understand a company's trends and overall financial performance.
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