What is the distinction between comparability and consistency? Compara
QUESTION
What is the distinction between comparability and consistency?
Comparability of financial statements over varying accounting period means that the financial statements of one period are comparable with the financial statements of another period. This helps the users of those statements in determining the trends of the companys financial performance and its position. On the¦
ary, the consistency of financial statements implies that the accounting policies applied for preparing financial statements in one period are consistent with the accounting policies applied over the other period.
ANSWER:
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