What Is Meant by Consistency When Discussing Financial Accounting Information

question 39

Multiple Choice

What is meant by consistency when discussing financial accounting information?

• A) Information that is measured and reported in a similar fashion across points in time.
• B) Information is timely.
• C) Information is measured similarly across the industry.
• D) Information is verifiable.

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Definitions:

Insurance Contracts

Legal agreements that provide compensation for specific losses or damages in exchange for premium payments.

Leases

Contracts in which one party agrees to rent property, services, or goods from another party for a specified time period in exchange for payment.

Revenue

The total amount of money received by a company for goods sold or services provided during a certain time period.

IFRS

Stands for International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB) that is globally accepted for preparing financial statements.