The Consistency Principle Is Violated When a Firm Uses Straight-Line

question 2

True/False

The consistency principle is violated when a firm uses straight-line depreciation one year and changes to declining balance depreciation the next year.

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Definitions:

Net Income

The total profit of a company after all expenses and taxes have been deducted from revenue.

Long-Run Safety

The assurance of safety and risk reduction measures over an extended period, aiming for sustainable protection against accidents or harm.

Extensible Business Reporting Language (XBRL)

A digital language for the electronic communication of business and financial data which is revolutionizing business reporting around the world.