1. Explain why the characteristics of comparability and consistency are important in financial reporting?

1. Explain why the characteristics of comparability and consistency are important in financial reporting?

2. What are the two key principles that are the foundation of the accrual basis of accounting.

3. Why might it be unfavorable for a firm to reduce repairs and maintenance, advertising, and research and development expenses?

 4. If an investor wants to understand how well a firm is performing in their core industry, which profit number (gross, operating or net) would be the best to analyze? Explain why.

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