The Principle of Consistency States That

question 26

Multiple Choice

The principle of consistency states that:

• A) changes in accounting methods should occur from one fiscal period to the next.
• B) a company cannot change from one inventory valuation method to another.
• C) a company should switch from LIFO to FIFO every other period.
• D) by using the same inventory method from one fiscal period to another, the financial statements are more meaningful.