The Consistency Concept Requires a Company to Use the Same

question 143

True/False

The consistency concept requires a company to use the same accounting methods period after period,so that financial statements are comparable across periods.

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Definitions:

Short-Term Benefit

Refers to immediate rewards or perks provided to employees, including bonuses, sick leave, and temporary incentives.

Long-Term Benefit

Advantages or positive outcomes that accrue over an extended period, often associated with investments or strategic business decisions.

Shareholder Needs

The requirements or interests of individuals or entities that own shares in a corporation, often focused on return on investment.

Price Appreciation

The increase in the value of an asset or investment over time, not including the dividends or interest earned.