Home › CA Inter › accounting › Comparability of Financial Statements › What does the term 'inter-enterprise comparison'…
What does the term 'inter-enterprise comparison' of financial statements imply?
AComparison of financial statements of different enterprises for the same period
BComparison of the same enterprise over different years
CComparison of tax returns
DComparison of management reports
Answer & Solution
Correct answer: A. Comparison of financial statements of different enterprises for the same period
1. Step 1: Per Ch 1, inter-enterprise comparison "involves comparison of financial statements of different enterprises for same accounting period".
2. Step 2: Intra-enterprise comparison is the same enterprise over years.
3. Step 3: Hence (B) is correct.
_Source: ICAI BoS CA Inter Paper 1, Ch 1 "Introduction to Accounting Standards"_
Related questions