The consistency principle requires we use only one method of depreciation for all our types of operational assets.

Question

Quizplus · Accepted Answer

The consistency principle requires that once a company chooses a method of accounting, it should use the same method consistently over time, but it does not mandate using only one method for all types of assets. Different types of assets can use different depreciation methods as long as they are applied consistently over time for those asset types.

The Consistency Principle Requires We Use Only One Method of Depreciation