Chapter 5, Problem 7DQ

To determine

Accounting Policies or Methods:

Accounting policies are the methods, rules, or valuation measures accepted and thus followed by a company in recording financial transactions thereby considered while preparing the financial statements.

Consistency Principle: Consistency principle states that a company should adhere to the once adopted policies, principles, methods and rules uniformly or consistently in the subsequent accounting periods until and unless the required change in the policy has a justified reason.

To Identify: Consistency principle precludes any changes from one accounting method to another or not.