Consistency refers to the degree of reliability users should find in financial statements when evaluating financial condition or the results of operations on an interfirm basis or predicting income or cash flows.

Question

Quizplus · Accepted Answer

Consistency refers to the use of the same accounting principles and methods from period to period within a company, ensuring that financial statements are comparable across different periods. It does not directly relate to interfirm comparisons or predicting income or cash flows.

Consistency Refers to the Degree of Reliability Users Should Find