The rule of consistency is violated when a company uses one method of depreciation for financial statements and another method of depreciation for tax purposes.

Question

Quizplus · Accepted Answer

The rule of consistency refers to the use of the same accounting principles over time within the financial statements of a company. Using different methods of depreciation for financial statements and tax purposes does not violate this rule, as it is a common practice due to differing objectives and requirements of financial reporting and tax regulations.

The Rule of Consistency Is Violated When a Company Uses