The consistency concept:
A)Requires a company to consistently use the same accounting method of inventory valuation unless a change will improve 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 concept.
E)Is also called the matching concept

Question

Quizplus · Accepted Answer

The consistency concept in accounting requires a company to consistently use the same accounting method of inventory valuation unless a change will improve financial reporting. This ensures that financial statements are comparable between different accounting periods and allows for better analysis of a company's financial performance over time.

The Consistency Concept