In Order to Compare the Financial Statements of Different Companies

question 5

True/False

In order to compare the financial statements of different companies, it would be desirable to have each company develop its own set of accounting rules and practices.

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Definitions:

Reliability

Degree of consistency in a measurement— that is, the extent to which it yields accurate measurements of a phenomenon across several trials, across different populations, and in different forms.

Inter-rater Reliability

The degree to which different observers or raters consistently assess the same phenomenon or outcome.

Inter-judge Reliability

The level of agreement or consistency between different judges or raters measuring the same phenomenon.

Internal Consistency

A measure of how well the items on a test measure the same construct or trait.