Which Statement Relating to Comparability Is True

question 7

Multiple Choice

Which statement relating to comparability is true?

• A) It requires an entity, as far as possible, to use the same accounting method from year to year.
• B) It means a company can never change an accounting method.
• C) It means all firms in the same industry should use the same accounting methods.
• D) It means the same depreciation method must be employed for all classes of non-current assets.

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Definitions:

Feedback

Information given to someone about their performance or behavior for the purpose of improvement.

Middle Stage

Refers to the intermediate phase in a process, development, or progression where initial adjustments have been made and the groundwork for final outcomes is being established.

Beginning Stage

The initial phase of a process, project, or relationship where things are starting or being developed.

End Stage

The final phase of a situation, condition, or process where things are concluding or coming to a completion.