The Consistency Principle States That Businesses Should Report the Same

question 75

True/False

The consistency principle states that businesses should report the same amount of ending merchandise inventory from period to period.

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Definitions:

Modal Class

The class interval with the highest frequency in a frequency distribution, representing the most common category or range of data.

Observations

The collection of data points or information obtained through watching, measuring, or recording something.

Histogram

A graphical representation of data using bars of different heights to show the frequency distribution of a dataset.

Interval Data

A type of data that is measured along a scale, where each point is placed at a specific distance from others, but there is no true zero point.