The Accounting Principle That Requires the Same Depreciation Method or Inventory

question 42

Multiple Choice

The accounting principle that requires the same depreciation method or inventory valuation method to be used over consecutive accounting periods is:

• A) reliability.
• B) conservatism.
• C) historical cost.
• D) consistency.

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Definitions:

Hold-Off Circuit

A type of circuit used to delay or prevent the activation of part of a system until certain conditions are met.

System Air Pressure

The pressure of the air in a pneumatic system, which is critical for the operation of air-powered tools or vehicles.

Parking Brakes

A mechanism in vehicles designed to keep the vehicle stationary by mechanically locking the wheels, also known as a handbrake or emergency brake.

Bucked Head

The result of a fastener, particularly a rivet, being deformed or expanded at one end to secure it in place.