Showing investments in securities on the balance sheet at current market values violates the consistency principle.

Name: Showing investments in securities on the balance sheet at current market values violates the consistency principle.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The consistency principle requires that companies use the same accounting methods from period to period. Showing investments at current market values is related to the measurement basis, not consistency.

Showing Investments in Securities on the Balance Sheet at Current