Intermediate Accounting 14th Edition

Published by Wiley
ISBN 10: 0470587237
ISBN 13: 978-0-47058-723-2

Chapter 2 - Conceptual Framework for Financial Reporting - Questions - Page 68: 8

Answer

Comparability encourages comparison between information around two distinct enterprises at a specific point in time. Consistency encourages comparison between information about the same enterprises at two unique points in time.

Work Step by Step

Comparability is affiliated with comparing two entities such as companies while consistency refers to the quality allowing comparison of statements of accounting periods of the same company or organization.
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