The Principle of Consistency Means That

question 51

Multiple Choice

The principle of consistency means that:

• A)the accounting methods used by an entity never change.
• B)the same accounting methods are used by all firms in an industry.
• C)the effect of any change in an accounting method will be disclosed in the financial statements or notes thereto.
• D)there are no alternative methods of accounting for the same transaction.

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Definitions:

Family Expectations

The beliefs or standards that family members have regarding the behavior, achievements, or roles of its members.

Society's Norms

The expected patterns of behavior and belief that are accepted and enforced by a group or society.

Property Rights

Legal rights to possess, use, and dispose of assets including real estate, personal property, and intellectual property.

Values Clarification

A process by which individuals reflect on, articulate, and align their personal values with their actions and decisions.