Comparability and Consistency Are Qualitative Characteristics That Make Accounting Information

question 112

Essay

Comparability and consistency are qualitative characteristics that make accounting information useful for decision-making purposes. Briefly explain the difference between these two characteristics and explain how they are related to each other.

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Definitions:

Unequal

Lacking equality in size, quantity, or degree; not evenly distributed or balanced.

Lorenz Curve

The Lorenz Curve is a graphical representation of the distribution of income or wealth within a society, indicating the degree of inequality.

Equitable

Fair and impartial treatment, especially in matters of distribution of wealth, opportunities, and privileges within a society.

45-degree Line

A line graphed in economics and finance representing places where two variables measured on the axes are equal in value.