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:

Raw Materials Transactions

Financial and operational activities related to the acquisition and use of raw materials in the production process.

November

November, which is the month number eleven in the Gregorian calendar.

Raw Materials Account

An accounting record that tracks the cost of raw materials purchased by a company intended for use in production.

November

The eleventh month of the year in the Gregorian calendar, often associated with fall in the northern hemisphere and spring in the southern hemisphere.