The Consistency Principle

question 49

Multiple Choice

The consistency principle

• A) Requires a company to use the same accounting methods period after period
• B) Requires a company to use one cost flow assumption exclusively
• C) Allows a company to change its cost flow assumption period after period in order to maximize net income
• D) Is also called the matching principle
• E) Allows a company to change its cost flow assumption period after period in order to minimize income taxes

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Definitions:

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