With Respect to Depreciation Policies, the Principle of Consistency Means

question 157

Multiple Choice

With respect to depreciation policies, the principle of consistency means:

• A) a company should use the same depreciation methods as other companies in the same industry.
• B) a company should disclose on the financial statements the depreciation method for all its capital assets.
• C) a company should use the same depreciation method in computing depreciation expense on all its assets.
• D) a company should use the same depreciation method from year to year for a given capital asset.