Which Statement Relating to Comparability Is Correct

question 22

Multiple Choice

Which statement relating to comparability is correct?

• A) It means a company can never change an accounting method.
• B) It means all firms in the same industry should use the same accounting methods.
• C) It means the same depreciation method must be employed for all classes of non-current assets.
• D) It requires an entity, as far as possible, to use the same accounting method from year to year.

---

Definitions:

First Trimester Screen

A prenatal test conducted during the first trimester of pregnancy to assess the risk for certain chromosomal abnormalities, including Down syndrome.

Cystic Fibrosis

A genetic disorder that affects mostly the lungs but also the pancreas, liver, kidneys, and intestine, leading to severe respiratory and digestive problems.

Birth Defects

Anomalies that are present at birth which can affect the structure or function of the body, possibly resulting in physical or mental disabilities.

Nuchal Translucency Screening

A prenatal test that measures the thickness of the clear tissue at the back of a developing baby's neck to assess the risk of Down syndrome and other chromosomal abnormalities.