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:

Registered Securities

Financial instruments, such as stocks and bonds, that are recorded in the official records of the issuing company, detailing who owns them.

Registration of Securities

The process of filing the necessary documents with the Securities and Exchange Commission before securities can be offered for sale to the public.

Financial Soundness

An indication that an entity is stable, solvent, and has the capability to meet its financial obligations.

EDGAR

Stands for Electronic Data Gathering, Analysis, and Retrieval system, a database maintained by the U.S. Securities and Exchange Commission for corporate filings.