The consistency principle:
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 principle
E)Is also called the matching principle

Question

Quizplus · Accepted Answer

The consistency principle 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 over time and between companies.

The Consistency Principle