The Convention of Consistency Refers to Consistent Use of Accounting

question 239

Multiple Choice

The convention of consistency refers to consistent use of accounting principles

• A) among firms.
• B) among accounting periods.
• C) throughout the accounting periods.
• D) within industries.

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Definitions:

Financial Plan

A comprehensive evaluation of an individual's or organization's current and future financial state by using current known variables to predict future income, asset values, and withdrawal plans.

Best Case Scenarios

Situations reflecting the most favorable or ideal outcomes of decisions, planning, or projections.

Asset Requirements

The minimum resources and assets needed for a business or investment to operate effectively and efficiently.

Financial Planning

The process of estimating the capital required and determining its competition, aiming to manage financial activities effectively for a person or organization.