A company uses LIFO in one year,then switches to FIFO and then to average-cost.This is a violation of the:

Question

Quizplus · Accepted Answer

The consistency principle states that a company should use the same accounting methods and principles from year to year, unless there is a valid reason to change. This helps ensure comparability between financial statements from different periods. By switching from LIFO to FIFO and then to average-cost, the company violates the consistency principle.

A Company Uses LIFO in One Year,then Switches to FIFO