What Is Meant by Comparability When Discussing Financial Accounting Information

question 138

Multiple Choice

What is meant by comparability when discussing financial accounting information?

• A) Information has predictive or confirmatory value.
• B) Information is reasonably free from error.
• C) Information that is measured and reported in a similar fashion across companies.
• D) Information is timely.

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Definitions:

Y-intercept

The point where a line crosses the Y-axis of a graph, indicating the value of the dependent variable when the independent variable is zero.

Independent Variable

A variable in an experiment or study that is manipulated to observe its effect on a dependent variable.

SSE

Squared Error Sum, a statistical metric that quantifies the difference between observed data and a predictive model's estimates.

Sample Correlation Coefficient

A statistical measure that calculates the strength and direction of a linear relationship between two quantitative variables in a sample.