Which of the Following Would Affect the Comparability of Accounting

question 12

Multiple Choice

Which of the following would affect the comparability of accounting information for a given company from one accounting period to the next?

I. Change in accounting principles
II. Disposition of segment of business
III. Restructuring expenses
IV. Change in auditors

• A)I and II
• B)I and III
• C)I, II, and III
• D)I, III, and IV

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Definitions:

Discontinued Operations

Components of a business that have been sold or terminated, which are reported separately in the financial statements.

Discontinued Operation

A segment of a company's business that has been sold, ceased to operate, or is scheduled for termination.

Statement of Income

The statement of income, also known as an income statement or profit and loss statement, is a financial document that outlines a company's revenues, expenses, and net income over a specific period, demonstrating the company's financial performance.

Dividend Yield

The measure of how much a company pays out in dividends each year relative to its stock price, often expressed as a percentage.