The Cervantes Company uses the same method of depreciation for its equipment in each fiscal period.This practice is an example of
A) conservatism.
B) consistency.
C) materiality.
D) matching.

Question

Quizplus · Accepted Answer

The Cervantes Company using the same method of depreciation for its equipment in each fiscal period is an example of consistency, which is one of the fundamental accounting principles. Consistency refers to the practice of using the same accounting methods from one period to the next, to enable comparability of financial statements over time.

The Cervantes Company Uses the Same Method of Depreciation for Its