Which Scenario Illustrates the Principle of Consistency

question 68

Multiple Choice

Which scenario illustrates the principle of consistency?

• A) Patti mentions several examples of other people volunteering at her charity to influence her readers.
• B) Marc stresses that the company anti-litter campaign occurs only once a year.
• C) Maribeth describes how that local cancer center has helped several colleagues,which is why the company supports it.
• D) Bill names several high-profile celebrities who support the same charity event that the company is sponsoring.
• E) Maya asks volunteers to sign up by return email because then they will be more likely to carry through.

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Definitions:

Net Book Value

The value of an asset as recorded on the balance sheet, subtracting accumulated depreciation or amortization from its original cost.

Depreciation

The systematic allocation of the cost of a tangible asset over its useful life, reflecting the consumption or wear and tear of the asset.

Carrying Value

Also known as book value, it is the value at which an asset is recognized in the balance sheet after accounting for depreciation, amortization, and impairment charges.

Consolidated Financial Statements

Combined financial statements of a parent company and its subsidiaries, presenting the financial position and results of operations of these separate entities as a single economic entity.