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:

Random Assignment

A method used in experiments to place participants into different groups in a way that each participant has an equal chance of being in any group, minimizing biases.

Participants

Individuals who take part in a study or experiment and whose behavior or responses are observed or measured.

Experiment

A study in which people are randomly assigned to a condition.

Causation

The relationship between cause and effect where one event (the cause) directly results in the occurrence of another event (the effect).