Question

To be comparable, accounting reports must belong to ________.

• A. common period
• B. use common unit of measurement
• C. use common format of reporting.
• D. all of the above

Answer 1

The correct option is D all of the above

Comparability is one of the most important characteristic of financial information.

• It states that accounting information must be capable of being compared between or among different entities.
  
• Further accounting information is comparable only if the accounting policies and standards are consistently applied year after year or from one accounting period to another accounting period.
  
• Also if there is any change in any accounting policy that change should also be reflected retrospectively and prospectively so as to deal with any changes in the amounts of transactions.