Question

Question: What is the benefit of a single set of high-quality accounting standards?

Short answer

Answer

A single set of high-quality accounting standards ensures comparability.

Step-by-step solution

Definition of Accounting Standards

Accounting standards are known as accounting standards and procedures that a business entity uses while reporting its accounting information in the financial statements.

Benefits of a single set of high-quality accounting standards

A single set of high-quality accounting standards helps the investors make better investment decisions by ensuring comparability. When the different business entities use the same accounting standards, it will be easy for investors to compare them. For example, Company A operating in the U.S, can be compared to its international competitor, company B, if both of them use a single set of accounting standards.