PRC-1 · Chapter 1 · Question 67 of 100
A company decides to use the straight-line method for depreciation every year rather than switching methods randomly. This practice strictly adheres to which accounting concept?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Consistency concept
Explanation
The consistency concept requires that an entity applies the same accounting policies and methods from one period to the next to allow for accurate comparability over time.
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