The Convention of Consistency Pertains to the Use of the Same

question 34

True/False

The convention of consistency pertains to the use of the same accounting principles by firms in the same industry.

---

Definitions:

Profits

The financial gain achieved when the revenue earned from business activities exceeds the expenses, costs, and taxes needed to sustain the activities.

Amtrak

The National Railroad Passenger Corporation, offering intercity passenger train service in the United States.

Publicly Owned

Pertains to assets, properties, or businesses that are owned and operated by governmental entities.

Private Company

A business entity owned by private individuals or entities and is not traded publicly on the stock market.