Which of the following statements is false?
a. it is possible to compare one firm's accounting data with another firm's accounting data as long as both firms used generally accepted accounting procedures
b. many managers compare the financial results from one accounting period with the results from previous accounting periods
c. most corporations include in their annual reports comparisons of important elements of their financial statements for recent years
d. the format and information contained in one firm's financial statements are most likely to differ drastically from the format and information contained in another firm's financial statements
e. many firms compare their financial results with industry averages
Not necessarily. As long as the company follows GAAP (IFRS or ASPE), the format and information should be the same. This is because the accounting standards requires firm to report financial information in a specific way.
