The Consistency Concept Allows a Company to Use Different Accounting

question 143

True/False

The consistency concept allows a company to use different accounting methods from period to period in order to maximize profits.

---

Definitions:

Net Working Capital (NWC)

The difference between a company's current assets and current liabilities, indicating its short-term financial health.

Sales Price

The actual amount for which a product or service is sold in the market.

Variable Costs

Costs that change in proportion to the level of activity or volume of goods produced in a business.

Fixed Costs

Expenses that do not change with the level of production or sales.