With respect to depreciation policies, the principle of consistency means:
A) a company should disclose on the ﬁnancial statements the depreciation method for all its capital assets.
B) a company should use the same depreciation method from year to year for a given capital asset.
C) a company should use the same depreciation methods as other companies in the same industry.
D) a company should use the same depreciation method in computing depreciation expense on all its assets.

Question

Quizplus · Accepted Answer

The principle of consistency in accounting means that a company should use the same accounting methods (in this case, depreciation methods) from one period to the next for a given capital asset, ensuring comparability of financial statements over time.

With Respect to Depreciation Policies, the Principle of Consistency Means