Which Statement Addresses the Consistency Characteristic of Accounting Information

question 66

Multiple Choice

Which statement addresses the consistency characteristic of accounting information?

• A)Companies in the same industry must use the same inventory costing method to facilitate comparison of results.
• B)Financial reporting practices in one country should be consistent with those in other countries.
• C)Businesses should generally use the same accounting methods and procedures from one period to the next.
• D)Once a company selects an inventory costing method, it must always use that method.

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Definitions:

Serial Position Effect

A phenomenon in memory research indicating that people tend to remember the first and last items in a series better than the middle items.

State-Dependent Memory

The phenomenon where an individual's ability to retrieve information is enhanced when they are in the same state of consciousness as when the memory was encoded.

Implicit Memory

Memory that enables task execution without the conscious recognition of influencing past experiences.

Memory Reliability

The degree to which memory accurately reflects past events, often influenced by various factors, including cognitive biases and decay over time.