The consistency principle dictates that once an estimate is made, it cannot be changed from year to year.

Name: The consistency principle dictates that once an estimate is made, it cannot be changed from year to year.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The consistency principle requires that once a company adopts an accounting method, it should continue to use it from one accounting period to the next unless a change is warranted and disclosed. However, estimates can be revised as new information becomes available.

The Consistency Principle Dictates That Once an Estimate Is Made