Consistency requires that a company use the same accounting procedures as other companies in the same industry.

Question

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Consistency requires that a company use the same accounting procedures within its own organization from year to year, but not necessarily the same procedures as other companies in the same industry. However, companies can still choose to follow industry-specific standards and guidelines for consistency and comparability between their own financial statements and those of their peers.

Consistency Requires That a Company Use the Same Accounting Procedures