7. What is meant by comparability when discussing financial accounting information? A) Information has predictive or confirmatory value. B) Information is reasonably free from error. C) Information is measured and reported in a similar fashion across companies. D) Information is timely. 8. Which of the following is a constraint in presenting financial information? A) Cost B) Full disclosure C) Relevance D) Consistency 9. A trial balance A) proves that debits and credits are equal in the ledger. B) supplies a listing of open accounts and their balances that are used in preparing financial statements. C) is normally prepared three times in the accounting cycle. D) All of these answer choices are correct. 10. The failure to properly record an adjusting entry to accrue an expense will result in A) understatement of expenses and an understatement of liabilities. B) understatement of expenses and an overstatement of liabilities. C) understatement of expenses and an overstatement of assets. D) overstatement of expenses and an understatement of assets. 11. Which of the following is true of accounting for changes in estimates? A) A company recognizes a change in estimate by making a retrospective ac to the financial statements. B) A company accounts for changes in estimates only in the period of chan though it affects the future periods. C) Changes in estimates are not carried back to adjust prior years. D) Changes in estimates are considered as errors