There are two components of accounting, comparability andconsistency.Comparability is when different companies report the...There...

90.2K

Verified Solution

Question

Accounting

There are two components of accounting, comparability andconsistency.
Comparability is when different companies report the same thingbut use different methods to do so.
Consistency is when the same company reports the sameinformation year after year.
Part a)
Provide examples of comparability and consistency. (Make upexamples, please elaborate)
Part b)
Also, please provide an example of an exception to usingcomparability and consistency. (when it is acceptable not to usethese methods)

Answer & Explanation Solved by verified expert

4.3 Ratings (806 Votes)

The answer is attached belowPlease See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member

Transcribed Image Text

In: AccountingThere are two components of accounting, comparability andconsistency.Comparability is when different companies report the...There are two components of accounting, comparability andconsistency.Comparability is when different companies report the same thingbut use different methods to do so.Consistency is when the same company reports the sameinformation year after year.Part a)Provide examples of comparability and consistency. (Make upexamples, please elaborate)Part b)Also, please provide an example of an exception to usingcomparability and consistency. (when it is acceptable not to usethese methods)