The Consistency Principle Helps Ensure That Financial Statements Are Comparable

question 126

True/False

The consistency principle helps ensure that financial statements are comparable across periods.

---

Definitions:

Right To Payment

A legal entitlement to receive a certain amount of money, often as compensation for goods provided, services rendered, or as restitution for harm or damage.

Incidental Beneficiary

A third party that benefits from a contract between two other parties, despite not being an intended beneficiary.

Contract

A legally binding agreement between two or more parties that outlines mutual obligations.

Creditor

An individual or institution that lends money or extends credit to another, with the expectation of being repaid.