The consistency concept:
A)Prescribes a company use the same accounting method of inventory valuation,an exception being when a change from one method to another will improve its financial reporting.
B)Requires a company to use one method of inventory valuation exclusively.
C)Requires that all companies in the same industry use the same accounting methods of inventory valuation.
D)Is also called the full disclosure principle.
E)Is also called the matching principle.

Question

Quizplus · Accepted Answer

The consistency concept prescribes that a company should use the same accounting method of inventory valuation consistently to ensure comparability between financial statements. However, if a change in accounting method will improve financial reporting, the company may make the change with proper disclosure.

The Consistency Concept