Question

What is meant by consistency when discussing financial accounting information?

a. Information presented by a company applies the same accounting treatment to similarevents, from period to period.
b. Information is timely.
c. Information is classified, characterized, and presented clearly and concisely.
d. Information is verifiable.

Answer 1

Answer:

The correct answer is letter "A": Information presented by a company applies the same accounting treatment to similar events, from period to period.

Explanation:

In accounting, consistency is the principle that states a company must use an accounting method for book-keeping its transactions and the same method should be used from one period to the following. However, the consistency principle allows the company to change the current method for a more preferred method.