« previous next »

Author Question: Explain why the characteristics of comparability and consistency are important in financial ... (Read 38 times)

Jkov05

  • Hero Member
  • *****
  • Posts: 556
on: Jul 6, 2018
Explain why the characteristics of comparability and consistency are important in financial reporting?
 
  What will be an ideal response?

Question 2

How can you prevent prior period adjustment errors?
 a. Do not enter a closing date.
   b. Setup a password to restrict access to prior periods.
   c. Do nothing. QuickBooks will not allow prior period adjustments.
   d. None of the above.


bookworm410

  • Sr. Member
  • ****
  • Posts: 341
Reply #1 on: Jul 6, 2018
Answer to Question 1

The characteristics of comparability and consistency require companies to use the same accounting methods and choices from one period to another. This allows users to compare financial information of an entity to other entities as well as comparing financial information of that entity to itself from one time period to another. Changes in accounting methods and choices can distort trends that are useful when trying to predict the future of a firm.

Answer to Question 2

b


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

The effects of organophosphate poisoning are referred to by using the abbreviations “SLUD” or “SLUDGE,” It stands for: salivation, lacrimation, urination, defecation, GI upset, and emesis.

Did you know?

Children with strabismus (crossed eyes) can be treated. They are not able to outgrow this condition on their own, but with help, it can be more easily corrected at a younger age. It is important for infants to have eye examinations as early as possible in their development and then another at age 2 years.

Did you know?

After 5 years of being diagnosed with rheumatoid arthritis, one every three patients will no longer be able to work.

Did you know?

Cucumber slices relieve headaches by tightening blood vessels, reducing blood flow to the area, and relieving pressure.

Did you know?

Cocaine was isolated in 1860 and first used as a local anesthetic in 1884. Its first clinical use was by Sigmund Freud to wean a patient from morphine addiction. The fictional character Sherlock Holmes was supposed to be addicted to cocaine by injection.

Two important changes occur in the upper airway in croup:The epiglottis swells, thereby occluding th Two important changes occur in the upper airway in croup:The epiglottis swells, thereby occluding th
Characteristics of Muscle Fibers Characteristics of Muscle Fibers
This modified model of Easton’s systems theory puts government decision makers as the source of pol This modified model of Easton’s systems theory puts government decision makers as the source of pol
Figure 7.1 shows the rapid decline in the trust of Americans in government since the 1960s. This de Figure 7.1 shows the rapid decline in the trust of Americans in government since the 1960s. This de
A pharmacist can explain to a patient why medication may look different and ensure the correct ... A pharmacist can explain to a patient why medication may look different and ensure the correct ...
Morphological differences in shell characteristics and head colouration patterns Morphological differences in shell characteristics and head colouration patterns
Video: Mechanism of enzyme action

For a complete list of videos, visit our video library