What is meant by consistency when discussing financial accounting information?
A) Information presented by a company that applies the same accounting treatment to similar events, from period to period.
B) Information is timely.
C) Information that is classified, characterized, and presented clearly and concisely.
D) Information is verifiable.

Question

Quizplus · Accepted Answer

Consistency in financial accounting information refers to the application of the same accounting treatment to similar transactions and events, from period to period. This ensures that financial statements are comparable over time and allows users to make meaningful evaluations and decisions. Timeliness, clarity, and verifiability are also important qualities of financial accounting information, but they do not specifically relate to consistency.

What Is Meant by Consistency When Discussing Financial Accounting Information