Question 9 of 34beginner🧠 RememberMCQ1 mark

Use of common unit of measurement and common format of reporting promotes;

Exercise: Test Your Understanding - IV | Q: 5 | (Page 15)
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Explanation

Option (A) is correct. The provided text explicitly states under the section 'Comparability' that for users to be able to compare various aspects of an entity over different time periods and with other entities, 'accounting reports must belong to a common period and use common unit of measurement and format of reporting.' Therefore, the use of a common unit and format directly promotes Comparability.