Asked by Banaz Fetah on Jul 11, 2024

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When financial information is measured and reported in a similar manner across different companies in the same industry it is

A) consistent.
B) comparable.
C) neutral.
D) faithfully representeD.

Comparability

An accounting principle that allows financial information to be compared across different periods or companies for analysis.

Financial Information

Data related to the financial status and activities of an individual, company, or organization.

Similar Manner

Describes actions or processes conducted in a way that is analogous or comparable to another, often used to ensure consistency.

  • Comprehend the attributes of accounting information, including its timeliness, consistency, and comparability.
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Verified Answer

NS
Nicholas SheehanJul 12, 2024
Final Answer :
B
Explanation :
The term "comparable" refers to the ability to compare financial information between companies in the same industry that have used similar accounting methods or reporting standards. This allows for a more accurate analysis of financial performance and makes it easier to identify trends or differences between companies. Consistency is also important, but it refers to the use of the same accounting methods and standards within a company over time. Neutral and faithful representation are concepts related to the accuracy and completeness of financial reporting, but they do not specifically relate to comparability between companies.