Which of the Following States That the Business Should Use

question 92

Multiple Choice

Which of the following states that the business should use the same accounting methods from period to period?

• A) Materiality concept
• B) Consistency principle
• C) Accounting conservatism
• D) Disclosure principle

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Definitions:

Financial Plan

A detailed strategy outlining an individual's or organization's financial goals and the means and timeline for achieving them.

Pro Forma Sales Forecasts

Pro forma sales forecasts are projected financial statements showing expected sales revenue, often used for planning and investment assessment.

Pro Forma Statements

Financial statements that project a company's financial performance in the future, based on certain assumptions and adding or excluding non-recurring items.

Anticipated Rate of Growth

The expected annual increase in a company's revenue or profit, often expressed as a percentage.