Which Statement Best Explains the Meaning of "Comparability" in Financial

question 20

Multiple Choice

Which statement best explains the meaning of "comparability" in financial reporting?

• A)Financial information that is available quickly to financial statement users.
• B)Financial information that can be objectively confirmed by another person.
• C)Financial reports that are comprehendible to the users of such reports.
• D)Financial statement preparers using consistent accounting policies year over year.

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Definitions:

Posttraumatic Stress Disorder

A psychiatric disorder that can occur in people who have experienced or witnessed a traumatic event such as a natural disaster, a serious accident, a terrorist act, war/combat, rape, or other violent personal assault.

Opponent-Process Reaction

A theory suggesting that emotions are regulated by mechanisms that operate in opposing pairs; for example, an increase in happiness leads to a decrease in sadness.

General Adaptation Syndrome

describes the three-stage process (alarm, resistance, exhaustion) that the body undergoes while responding to stress, as identified by Hans Selye.

Nervous Exhaustion Condition

A non-specific medical term used historically to describe mental and physical symptoms of stress, anxiety, or depression.