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:

Phantom Limb

A phenomenon where individuals feel sensations, including pain, in a limb or a part of a limb that has been amputated.

Pain Relief

Methods or substances used to reduce or eliminate pain.

Sensations

The way our nervous system and sensory receptors capture and convey energies stemming from stimuli in our surroundings.

Hypnosis

A trance-like state of focus and concentration achieved with the help of a therapist, used for therapeutic purposes.