15.4.2 - Consistency
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Practice Questions
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What is the consistency principle in accounting?
💡 Hint: Think about the impact of changing methods on financial statements.
Give an example of an accounting method that should be used consistently.
💡 Hint: Consider how businesses report expenses over time.
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Interactive Quizzes
Quick quizzes to reinforce your learning
What does the consistency principle require companies to do?
💡 Hint: Think about why stakeholders need consistency.
True or False: Companies should disclose changes when they alter their accounting methods.
💡 Hint: Consider what stakeholders expect when there are changes.
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Challenge Problems
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A company has traditionally used the straight-line method for depreciation but decides to switch to an accelerated method. Discuss the steps necessary for compliance with the consistency principle.
💡 Hint: Consider what transparency looks like in financial reporting.
Evaluate the impact of inconsistencies on a company's long-term financial health and investor perception.
💡 Hint: Reflect on how stakeholders view reliability in financial information.
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