The Consistency Concept

question 94

Multiple Choice

The consistency concept:

• A) Prescribes a company to consistently apply the same accounting method of inventory valuation, an exception being when a change from one method to another will improve its 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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