The consistency convention requires that

Question

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The consistency convention requires that a company use the same accounting procedures year after year. This ensures that financial statements are comparable over time and facilitates analysis and decision-making by investors and other stakeholders. While it is important for a company to disclose its accounting policies, this is not specifically required by the consistency convention. The use of independent auditors and industry-wide accounting methods are not directly related to consistency in accounting procedures.

The Consistency Convention Requires That