A Company Follows the Qualitative Characteristic of Consistency

question 44

Multiple Choice

A company follows the qualitative characteristic of consistency. This means that

• A)For expenses, the company uses the same account names as used by its competitors.
• B)The company has elected certain accounting principles that can never be changed.
• C)The company applies the same accounting principles each period.
• D)The company applies the same accounting principles as its competitors.

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Definitions:

Quantity Demanded

It refers to the total amount of a good or service that consumers are willing and able to purchase at a given price within a specified time period.

Surplus

The condition that occurs when the quantity of a good or service supplied exceeds the quantity demanded, often leading to a decrease in prices.

Shortage

An instance in the marketplace where the need for a product or service outstrips its provision.

Equilibrium Price

The cost at which the supply and demand for goods are equal.