A medical laboratory bought a courier vehicle in 2008 and used a six-year depreciation schedule. The next year, the lab bought a similar vehicle and used a five-year depreciation schedule. This violates the accounting principle of ____.

Question

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The accounting principle violated is consistency. This principle requires that a business should use the same accounting methods and principles from period to period, ensuring comparability of financial statements over time. By changing the depreciation schedule from six years to five years for similar assets, the lab fails to apply this principle.

A Medical Laboratory Bought a Courier Vehicle in 2008 and Used