The consistency convention requires a company to use LIFO from year to year.

Name: The consistency convention requires a company to use LIFO from year to year.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The consistency convention requires a company to use the same accounting methods and principles from year to year. If a company chooses to use LIFO (Last In, First Out) for inventory valuation in one year, it must continue to use LIFO in subsequent years to maintain consistency. Therefore, the statement is true.

The Consistency Convention Requires a Company to Use LIFO from Year