The principle of consistency states that: Companies are prohibited from ever changing their accounting methods. Every company

Fantastic news! We've Found the answer you've been seeking!

Question:

The principle of consistency states that:

Companies are prohibited from ever changing their accounting methods.

Every company in the same industry must use the same accounting principle.

There must be a consistent blend of accounting principles.

If changes in accounting principles are made, the reasons for the change and the effects on the company's net income must be disclosed.

Related Book For answer-question

Financial and Managerial Accounting the basis for business decisions

ISBN: 978-0078111044

16th edition

Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello

See More Books

Posted Date: Aug 25, 2022 01:25 AM

See More Questions

Companies in every industry must strive to reduce or, if possible, eliminate non-value-added activities. Often the process of identifying and managing these types of activities requires companies to...
Change in Accounting Principle Zehms Company began operations in 2008 and adopted weighted-average pricing for inventory. In 2010, in accordance with other companies in its industry. Zehms changed...
If significant changes are made in the accounting principles applied from one period to the next, why should the effect of these changes be disclosed in the financial statements?
Suppose that Q(x, y) is a function such that 1/Q(x, y) is continuous for all (x, y). Which of the following statements are true? (a) Q(x, y) is continuous for all (x, y). (b) Q(x, y) is continuous...
For the pressure cylinder defined in the problem specified in the table, the gas pressure is cycled between zero and pg. Determine the fatigue factor of safety for the bolts using the following...
What appears to be missing from the Coca-Cola vision statement presented in Capsule?
Sonic Drive-Ins borrowed money by issuing $\$ 1,000,000$ of $6 \%$ bonds payable at 96.5 . 1. How much cash did Sonic receive when it issued the bonds payable? 2. How much must Sonic pay back at...
1. RHs CEO believes that the internet is limited in its ability to facilitate differentiation among retailers. Do you agree? Which retailers do a particularly effective job at presenting their...
To start on this one, you will need to calculate the labor time consumed by different products for each manufacturing process (you will need to account for time consumed per run and number of runs)....
Consolidation related simulation example: Millennium Capital Management, Inc., (MCM) acquired a 90% interest in NextGen, Inc. MCM's Financial Manager, Matthew Steven, has prepared a draft memo to the...
A borrower is considering selling their home. They have a $350,000 loan amortized over 15 years at a 5.5% interest rate. They have been paying the mortgage payments for 5 full years. What is the...
Bernie asks you and the other interns to an analysis of a client's scenario/case based upon three appellate opinions and make a recommendation based on your analysis. The final project should follow...
What are some improvements in terms of corporate governance and internal control mechanisms that you would suggest to maintain high revenues without a recurrence of similar scandals like Wells Fargo...
The owner of Advertising Pro wants to adopt the Balanced Scorecard in the company. There are two divisions: Video production and Radio. He has asked you to explain how BSC can improve his company's...
Improving revenue and performance Read the scenario and complete the tasks that follow. Scenario 2: Evaluating internal controls to improve revenue and performance. A year ago, the previous branch...
Kuzio Corporation produces and sells a single product. Data concerning that product appear below: Selling price Variable expenses Contribution margin Per Unit $ 150 90 Percent of Sales 100% $ 60 60%...
1. Consider the following array of integers (4 bytes each): int a, b, c. d[10] W Memoryfm Base address Assume the base address of the above array is stored in register $s1. a. Write the MIPS code to...
Integration is a vital concept when applied in one?s life. Integrating your life means making ideal choices. Perfect choices on the other go in line with quality decisions. Quality decisions lead to...
MURDER TO GO! writes and manufactures murder mystery parlor games that it sells to retail stores. The following is per-unit information relating to the manufacture and sale of this product: Unit...
Lock Tight, Inc., produces outside doors for installation on homes. The following information was gathered to prepare budgets for the upcoming year beginning January 1: Sales forecast in units . . ....
Boeing Company has had its financial ups and downs. Recently, the CFO for Boeing helped turn its problems around by analyzing the amount of value each product was providing to the companys bottom...
The trial balance of Alpha Graphics at October 31, 2007, follows, along with the data for the month-end adjustments. Adjusting data at October 31: a. Unearned service revenue still unearned, \(\$...
The unadjusted T-accounts of Investors Brokerage at December 31, 2007 , and the related year-end adjustment data follow. Adjustment data at December 31, 2007. a. Depreciation for the year, \(\$...
The unadiusted trial balance of Jen Weaver Insurance at April 30, 2008, follow's on the next page. Adjustment data at April 30, 2008, consist of a. Accrued service revenue, $\$ 1,600$. b....

The principle of consistency states that: Companies are prohibited from ever changing their accounting methods. Every company

Question:

Expert Answer:

d If changes in accounting principles are made the reasons for ... View the full answer

Financial and Managerial Accounting the basis for business decisions

Students also viewed these accounting questions