If an Investor Can Use Accounting Information for Two Different

question 128

Multiple Choice

If an investor can use accounting information for two different companies to evaluate the types and amounts of expenses, the information is said to have the quality of

• A) Comparability
• B) Consistency
• C) Neutrality
• D) Understandability

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Definitions:

Horizontal Growth

Increase in size or spread of an organism or structure by expanding outwards, rather than elongating.

Longitudinal Growth

The growth of an organism in length, typically observed in the elongation of bones and roots.

Secondary Growth

An increase in the girth of a plant due to the activity of the vascular cambium and cork cambium; secondary growth results in the production of secondary tissues (i.e., wood and bark).

Horizontal Growth

Expansion or growth of an entity (such as a company or plant) outward rather than upward, which can involve increasing product lines or locations.