'Accounting information should be comparable'. Do you agree with this statement? Give two reasons.
Accounting information should be comparable because of the following reasons.
1. Comparable accounting information helps in inter-firm comparisons. This helps in assessing viability and advantages of various policies adopted by different firms.
2. It also helps in intra-firm comparisons that help in determining the changes and also to ascertain the results of various policies and plans adopted in different time periods. This also helps to figure out the errors, ascertain growth and assist in management planning.
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(iv) The ___________ concept states that if straight line method of depreciation is used in one year, then it should also be used in the next year.
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(vi) If a firm receives an order for goods, it would not be included in the sales figure owing to the ___________.
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answer might be more good if points are little smaller and more
Useful answer
According information should be comparable. Do you agree with this statement.give two reasmatlb
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