The Consistency Principle

question 78

Multiple Choice

The consistency principle:

• A)Requires a company to consistently use the same accounting method of inventory valuation unless a change will improve financial reporting
• B)Requires a company to use one method of inventory valuation exclusively
• C)Requires that all companies in the same industry use the same accounting methods of inventory valuation
• D)Is also called the full disclosure principle
• E)Is also called the matching principle

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Definitions:

Strategic Plan

A systematic process of envisioning a desired future and translating this vision into broadly defined goals or objectives and a sequence of steps to achieve them.

Allergic To Cocoa

refers to having an adverse immune response to cocoa beans or products containing cocoa, leading to allergic reactions.

Target Markets

Specific groups of potential customers identified by companies as most likely to purchase their products or services.

Distinctive Point

A unique or distinguishing feature that sets something apart from similar entities.