The Consistency Concept

question 165

Multiple Choice

The consistency concept:

• A) Is also called the full disclosure principle.
• B) Is also called the matching principle.
• C) Requires a company to use one method of inventory valuation exclusively.
• D) Prescribes a company use the same accounting method of inventory valuation, an exception being when a change from one method to another will improve its financial reporting.
• E) Requires that all companies in the same industry use the same accounting methods of inventory valuation.

Identify the factors affecting the supply curve, including natural forces and price controls.

Recognize the role of monopolies, particularly regulated monopolies, and barriers to entry in the economy.

Understand how economic policies like price controls can impact supply and demand, and potentially lead to shortages.

Grasp the relationship between demand, supply, and employment.