Question

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

Answer 1

The answer is option C

Using the same accounting principles from year to year within a company refers to the consistency, Whereas comparability refers to the quality that makes comparison between the financial information of one company to another easy.

There statement made in Option is not true