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What is Comparability
This quality would enable users to identify changes in the business over time (for instance, trend in sales revenue over the past five years). It would also help them to evaluate the performance of business in relation to similar businesses. Comparability is achieved by treating items which are essentially the same in the same manner for accounting purposes. Comparability may also be enhanced by making clear the policies which have been adopted in measuring and presenting the information.
Four major qualitative characteristics of accounting information There are four major qualitative characteristics which influence usefulness of accounting information. Additio
Company A(lessee) will rent inventory for you for 3 years rather than buying it for the regular price of $240,000. Normally these units, which cost us $120,000 to produce, will las
Principles, concepts and CONVETIONS
HOW TO RECORD INVENTORY AT NET REALISABLE VALUE ON JOURNAL
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Accounting policies Accounting policies are the specific assumptions, bases, principles and practices that are adopted by firms in preparing financial statements. The standard
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