Accounting information should be comparable . Do u agree with statement ? Give reasons
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Yes . Accounting Information should be comparable.
The business entity's financial statements must be comparable to one financial year to previous or next financial years, to make a clear picture of the performance of the business.
Therefore, we follow consistency in Accounting Policies and Accounting Principles and estimates.
The financial statements of one business entity to another business entity should also be comparative.
It helps to know which firm is growing faster and better.
Therefore all business entities follow GAAP
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