With Respect to Depreciation Policies, the Principle of Consistency Means

question 121

Multiple Choice

With respect to depreciation policies, the principle of consistency means:

• A) a company should disclose on the financial statements the depreciation method for all its capital assets.
• B) a company should use the same depreciation method from year to year for a given capital asset.
• C) a company should use the same depreciation methods as other companies in the same industry.
• D) a company should use the same depreciation method in computing depreciation expense on all its assets.

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