Which one of the following is violated when a firm has a policy of accelerating the recognition of depreciation expense during good years and decreasing depreciation expense during lean years?
A)Relevance
B)Matching
C)Consistency
D)Conservatism

Question

Quizplus · Accepted Answer

This practice violates the consistency principle, which requires that a company uses the same accounting methods and principles from period to period, ensuring comparability of financial statements over time. Accelerating or decreasing depreciation expense based on the firm's performance year to year is inconsistent.

Which One of the Following Is Violated When a Firm