Which of the Following Would Affect the Comparability of Accounting

question 12

Multiple Choice

Which of the following would affect the comparability of accounting information for a given company from one accounting period to the next?

I. Change in accounting principles
II. Disposition of segment of business
III. Restructuring expenses
IV. Change in auditors

• A)I and II
• B)I and III
• C)I, II, and III
• D)I, III, and IV

---

Definitions:

Process Costing

A costing method used in industries where production is continuous, assigning costs to units of output on the basis of average costs for each process or department.

Labour

Labour refers to human work effort, both physical and mental, used in the production of goods and services.

Back Office

The back office consists of the administrative and support personnel in a company who are not client-facing, responsible for functions such as settlements, clearances, record maintenance, and IT services.

Car Hire Companies

Businesses specializing in renting out automobiles for short periods of time, often varying from a few hours to several weeks.