The Convention of Consistency Refers to the Consistent Use of Accounting

question 154

Multiple Choice

The convention of consistency refers to the consistent use of accounting principles

• A) among all firms in a particular industry.
• B) throughout one accounting period.
• C) among all firms.
• D) among accounting periods.

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Definitions:

Estimated Value

An approximation of the worth of something, often used in the context of potential outcomes in decision making or investment.

Inverse Relationship

A relationship between two variables in which one variable increases as the other decreases.

Independent Variable

A variable that is manipulated to observe its effect on a dependent variable in an experiment.

Deterministic Model

A mathematical model in which outcomes are precisely determined through known relationships among states and events, without any randomness.