Question

Which of the following statements is not true? Comparability means using the same accounting principles from year to year within a company. Faithful representation is the quality of information that gives assurance that it is free from error. Relevant accounting information must be capable of making a difference in the decision. The primary objective of financial reporting is to provide financial information that is useful to investors and creditors for making decision.

Answer 1

Answer:

Comparability means using the same accounting principles from year to year within a company.

Explanation:

Comparability is a term often used in accounting operation to describe the degree or level to which the information shown in the financial statements of a particular company is relative or comparable with other various companies, over a given period of time.

Hence, in this case, the correct answer is "Comparability means using the same accounting principles from year to year within a company." Because the statement is not CORRECT.