A company follows the qualitative characteristic of consistency. This means that
A)For expenses, the company uses the same account names as used by its competitors.
B)The company has elected certain accounting principles that can never be changed.
C)The company applies the same accounting principles each period.
D)The company applies the same accounting principles as its competitors.

Question

Quizplus · Accepted Answer

Consistency means that a company applies the same accounting principles and methods each period. It does not mean that the company must use the same account names as its competitors or that it cannot change its accounting principles.

A Company Follows the Qualitative Characteristic of Consistency