With respect to depreciation policies,the principle of consistency means:
A)A company should use the same depreciation methods in its financial statements that it uses in its income tax returns.
B)A company should use the same depreciation methods as other companies in the same industry.
C)A company should use the same depreciation method from year to year for a given plant asset.
D)A company should use the same depreciation method in computing depreciation expense on all its assets.

Question

Quizplus · Accepted Answer

The principle of consistency states that a company should use the same accounting methods and procedures from period to period so that financial statements are comparable across periods. This includes using the same depreciation method from year to year for a given plant asset. This allows for a more accurate comparison of financial statements year over year.

With Respect to Depreciation Policies,the Principle of Consistency Means