The Consistency Concept Prescribes That a Company Use the Same

question 119

True/False

The consistency concept prescribes that a company use the same accounting methods period after period, so that financial statements are comparable across periods.

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Definitions:

Common Stock

Type of equity security that represents ownership in a corporation, with rights to vote on corporate matters and receive dividends.

Par Value

A nominal value assigned to shares of stock in a company's charter, not necessarily reflecting market value.

Common Stock

A type of equity security that represents ownership in a corporation, giving holders voting rights and a share in the company's profits through dividends.

Stockholders' Equity

The residual interest in the assets of a corporation after deducting its liabilities, often divided into share capital and retained earnings.