Financial Information Does Not Demonstrate Comparability When

question 25

Multiple Choice

Financial information does not demonstrate comparability when

• A)firms in the same industry use different accounting methods to account for the same type of transaction.
• B)a company changes its estimate of the residual value of a fixed asset.
• C)a company fails to adjust its financial statements for changes in the value of the measuring unit.
• D)none of these.

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Definitions:

Intuitive Thought

A thinking process that relies on instinctive judgments rather than conscious reasoning or analysis.

Intuitive Thought

A cognitive process that creates immediate awareness or understanding without relying on reasoning or logical deduction.

Horizontal Décalage

A term from Piaget's theory of cognitive development, describing the variability in a child’s understanding and application of concepts across different situations.

Conservation

Understanding that physical properties do not change when appearance changes, crucial in cognitive development, repeating definition with emphasis on its role in cognitive science.