Tavella Co.applies the consistency convention.What does this mean?
A)Tavella Co.uses the same names for all its expenses as its competitors.
B)Tavella Co.has selected certain accounting principles that can never be changed.
C)Tavella Co.applies the same accounting principles each accounting period.
D)Tavella Co.applies the same accounting principles as its competitors.

Question

Quizplus · Accepted Answer

The consistency convention in accounting requires that a company applies the same accounting principles and methods each accounting period. This ensures that financial statements are comparable over time and allows users of the financial statements to make informed decisions based on consistent information. Choice A, B, and D are incorrect as they do not accurately describe the consistency convention.

Tavella Co.applies the Consistency Convention.What Does This Mean