Consistency Principle - Definition, Importance, and Application

The Consistency Principle

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Question

The consistency principle -

Answers

A. requires that the company use a selected accounting method period after period

B. all of these answers are correct

C. is limited to inventory pricing methods

D. requires that a company use one inventory method exclusively

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Explanations

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A. B. C. D.

The consistency principle requires that an accounting procedure, once adopted by a company, remain in use from one period to the next unless users are informed of the change. It is not limited to inventory valuation methods.

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