The Principle of Consistency States That

question 94

Multiple Choice

The principle of consistency states that:

• A)Companies are prohibited from ever changing their accounting methods.
• B)Every company in the same industry must use the same accounting principle.
• C)There must be a consistent blend to the accounting principles.
• D)If changes in accounting principles are made,the reasons for the change and the effects on the company's net income must be disclosed.

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Definitions:

Markets

These are venues or systems where buyers and sellers interact to exchange goods, services, or financial instruments, often determining prices through supply and demand.

Operating Objectives

Specific, short-term targets set by a business or organization to ensure effective day-to-day operations and progress towards its broader goals.

Continuous Improvement

An ongoing effort to enhance products, services, or processes through incremental improvements or breakthrough achievements.

SWOT Analysis

An examination of organizational strengths and weaknesses and environmental opportunities and threats.