The Consistency Concept

question 201

Multiple Choice

The consistency concept:

• A)Prescribes that a company use the same accounting method period after period except when a change of method will improve financial reporting.
• B)Requires a company to use a single method of inventory valuation for all categories of inventory.
• C)Requires that all companies in the same industry use the same method of inventory valuation.
• D)Is also called the full disclosure concept.
• E)Is also called the matching concept.

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Definitions:

Collective Agreement

A written contract negotiated between an employer and a union representing the employees, specifying the terms and conditions of employment.

Labour Relations Board

A governmental agency responsible for overseeing and enforcing labor laws and practices, including dispute resolution between employers and employees.

Bargaining Unit

A group of employees with a clear and identifiable community of interests who are represented by a single labor union in negotiations with employers.

Labour Relations Board

A governmental authority that oversees and resolves disputes involving labor and management practices.