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.

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Definitions:

Output Module

A component in programmable controllers or computers that sends control signals or output to external devices.

Binary Information

Data represented in a base-2 numeral system, using only two symbols, typically 0 and 1, fundamental in computing.

Random Memory Bits

These are bits stored in memory without any specific order, often accessed or used in non-sequential operations.

Sequencer Control Parameter

A setting or value that determines the behavior of a sequencing control, often used in automation and process control.