Showing marketable securities on the balance sheet at current market values violates the consistency principle.

Name: Showing marketable securities on the balance sheet at current market values violates the consistency principle.
Brand: Quizplus
Rating: 4.9 (33 reviews)

Question

Quizplus · Accepted Answer

The consistency principle requires that the same accounting methods be used from period to period. Reporting marketable securities at current market values is consistent with fair value accounting, which is allowed under certain accounting standards.

Showing Marketable Securities on the Balance Sheet at Current Market