Which principle or concept states that business should use the same accounting methods and procedures from period to period? Learning Objective 1 a. Disclosure b. Conservatism c. Consistency d. Materiality

Question

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Answer 1

Textbook Question

Chapter 6, Problem 1QC

Which principle or concept states that business should use the same accounting methods and procedures from period to period?

Learning Objective 1

a. Disclosure
b. Conservatism
c. Consistency
d. Materiality

Expert Solution & Answer

To determine

Accounting principles:The accounting principles are rules of action or conduct which are adopted by the accountants universally while recording accounting transactions. These guidelines are commonly associated with the theory and procedures of accounting of the companies that follow certain structure for reporting financial statements.

To identify:

The principles that states business shall use same accounting procedures from period to period

Answer to Problem 1QC

Solution:

c. The Consistency principle states that business shall have same accounting procedures from period to period.

Explanation of Solution

a) Disclosure −As per the disclosure principle, the firm shall disclose all the relevant information that users of financial statements have a right to know. This information should cover the relevant, reliable and comparable information of the company so that users can use this information to make wise decisions.

b) Conservatism - The goal is to conserve the realistic figures. Its nature is to caution the reporting items in financial statements. Example- “Anticipate no gains, but provide for all losses”

c) Consistency - This principle means once it’s being adopted, it must be applied consistently in future. It helps investors and users of financial statements to easily and correctly compare financial statements of a company from one period to the next.

d) Materiality - The materiality concept applies when it would cause someone to change a decision regarding the information of material used. It is only significant for some items. It doesn’t include all the company. For example − The materials used in the company Apple is not that significant when compared to smaller firms.

Conclusion

The consistency principle states that business has same accounting procedures from period to period. All other principles like disclosure, conservatism and materiality concepts ignore the accounting procedures which carry from period to period.

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03:34

Students have asked these similar questions

Crane Construction Co. has consistently used the percentage-of- completion method of recognizing revenue. During 2018, Crane entered into a fixed-price contract to construct an office building for $27,000,000. Information relating to the contract is as follows: At December 31 2018 2019 Percentage of completion 10% 40% Estimated total cost at completion $ 2,00,00,000 $ 2,14,00,000 $ 33,10,000 Gross profit recognized (cumulative) $ 13,80,000 Contract costs incurred during 2019 were: a. $5,250,000. b. $6,560,000. c. $8,190,000. d. $8,560,000.

Solve this following requirements on these general accounting question

A company performed $8,635 of services and received $3,000 in cash with the remaining amount to be paid in 60 days with no interest. What would the effect of this transaction on the company s current month-end accounting equation? A. $3,000 increase in Assets; $5,635 decrease in Liabilities; $8,635 increase in Stockholders' Equity. B. $8,635 increase in Assets; No effect on Liabilities; $8,635 increase in Stockholders' Equity. C. $5,635 increase in Assets; No effect on Liabilities; $5,635 increase in Stockholders' Equity. D. $8,635 increase in Assets; $8,635 increase in Liabilities; No effect on Stockholders' Equity.

Answer 2

Textbook Question

Chapter 6, Problem 1QC

Which principle or concept states that business should use the same accounting methods and procedures from period to period?

Learning Objective 1

a. Disclosure
b. Conservatism
c. Consistency
d. Materiality

Expert Solution & Answer

To determine

Accounting principles:The accounting principles are rules of action or conduct which are adopted by the accountants universally while recording accounting transactions. These guidelines are commonly associated with the theory and procedures of accounting of the companies that follow certain structure for reporting financial statements.

To identify:

The principles that states business shall use same accounting procedures from period to period

Answer to Problem 1QC

Solution:

c. The Consistency principle states that business shall have same accounting procedures from period to period.

Explanation of Solution

a) Disclosure −As per the disclosure principle, the firm shall disclose all the relevant information that users of financial statements have a right to know. This information should cover the relevant, reliable and comparable information of the company so that users can use this information to make wise decisions.

b) Conservatism - The goal is to conserve the realistic figures. Its nature is to caution the reporting items in financial statements. Example- “Anticipate no gains, but provide for all losses”

c) Consistency - This principle means once it’s being adopted, it must be applied consistently in future. It helps investors and users of financial statements to easily and correctly compare financial statements of a company from one period to the next.

d) Materiality - The materiality concept applies when it would cause someone to change a decision regarding the information of material used. It is only significant for some items. It doesn’t include all the company. For example − The materials used in the company Apple is not that significant when compared to smaller firms.

Conclusion

The consistency principle states that business has same accounting procedures from period to period. All other principles like disclosure, conservatism and materiality concepts ignore the accounting procedures which carry from period to period.

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03:34

Answer 3

Textbook Question

Chapter 6, Problem 1QC

Which principle or concept states that business should use the same accounting methods and procedures from period to period?

Learning Objective 1

a. Disclosure
b. Conservatism
c. Consistency
d. Materiality

Expert Solution & Answer

To determine

Accounting principles:The accounting principles are rules of action or conduct which are adopted by the accountants universally while recording accounting transactions. These guidelines are commonly associated with the theory and procedures of accounting of the companies that follow certain structure for reporting financial statements.

To identify:

The principles that states business shall use same accounting procedures from period to period

Answer to Problem 1QC

Solution:

c. The Consistency principle states that business shall have same accounting procedures from period to period.

Explanation of Solution

a) Disclosure −As per the disclosure principle, the firm shall disclose all the relevant information that users of financial statements have a right to know. This information should cover the relevant, reliable and comparable information of the company so that users can use this information to make wise decisions.

b) Conservatism - The goal is to conserve the realistic figures. Its nature is to caution the reporting items in financial statements. Example- “Anticipate no gains, but provide for all losses”

c) Consistency - This principle means once it’s being adopted, it must be applied consistently in future. It helps investors and users of financial statements to easily and correctly compare financial statements of a company from one period to the next.

d) Materiality - The materiality concept applies when it would cause someone to change a decision regarding the information of material used. It is only significant for some items. It doesn’t include all the company. For example − The materials used in the company Apple is not that significant when compared to smaller firms.

Conclusion

The consistency principle states that business has same accounting procedures from period to period. All other principles like disclosure, conservatism and materiality concepts ignore the accounting procedures which carry from period to period.

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03:34

Answer 4

Textbook Question

Chapter 6, Problem 1QC

Which principle or concept states that business should use the same accounting methods and procedures from period to period?

Learning Objective 1

a. Disclosure
b. Conservatism
c. Consistency
d. Materiality

Expert Solution & Answer

To determine

Accounting principles:The accounting principles are rules of action or conduct which are adopted by the accountants universally while recording accounting transactions. These guidelines are commonly associated with the theory and procedures of accounting of the companies that follow certain structure for reporting financial statements.

To identify:

The principles that states business shall use same accounting procedures from period to period

Answer to Problem 1QC

Solution:

c. The Consistency principle states that business shall have same accounting procedures from period to period.

Explanation of Solution

a) Disclosure −As per the disclosure principle, the firm shall disclose all the relevant information that users of financial statements have a right to know. This information should cover the relevant, reliable and comparable information of the company so that users can use this information to make wise decisions.

b) Conservatism - The goal is to conserve the realistic figures. Its nature is to caution the reporting items in financial statements. Example- “Anticipate no gains, but provide for all losses”

c) Consistency - This principle means once it’s being adopted, it must be applied consistently in future. It helps investors and users of financial statements to easily and correctly compare financial statements of a company from one period to the next.

d) Materiality - The materiality concept applies when it would cause someone to change a decision regarding the information of material used. It is only significant for some items. It doesn’t include all the company. For example − The materials used in the company Apple is not that significant when compared to smaller firms.

Conclusion

The consistency principle states that business has same accounting procedures from period to period. All other principles like disclosure, conservatism and materiality concepts ignore the accounting procedures which carry from period to period.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

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Answer 5

Textbook Question

Answer 6

Textbook Question

Answer 7

Expert Solution & Answer

To determine

Accounting principles:The accounting principles are rules of action or conduct which are adopted by the accountants universally while recording accounting transactions. These guidelines are commonly associated with the theory and procedures of accounting of the companies that follow certain structure for reporting financial statements.

To identify:

The principles that states business shall use same accounting procedures from period to period

Answer to Problem 1QC

Solution:

c. The Consistency principle states that business shall have same accounting procedures from period to period.

Explanation of Solution

a) Disclosure −As per the disclosure principle, the firm shall disclose all the relevant information that users of financial statements have a right to know. This information should cover the relevant, reliable and comparable information of the company so that users can use this information to make wise decisions.

b) Conservatism - The goal is to conserve the realistic figures. Its nature is to caution the reporting items in financial statements. Example- “Anticipate no gains, but provide for all losses”

c) Consistency - This principle means once it’s being adopted, it must be applied consistently in future. It helps investors and users of financial statements to easily and correctly compare financial statements of a company from one period to the next.

d) Materiality - The materiality concept applies when it would cause someone to change a decision regarding the information of material used. It is only significant for some items. It doesn’t include all the company. For example − The materials used in the company Apple is not that significant when compared to smaller firms.

Conclusion

The consistency principle states that business has same accounting procedures from period to period. All other principles like disclosure, conservatism and materiality concepts ignore the accounting procedures which carry from period to period.

Answer 8

Expert Solution & Answer

To determine

Accounting principles:The accounting principles are rules of action or conduct which are adopted by the accountants universally while recording accounting transactions. These guidelines are commonly associated with the theory and procedures of accounting of the companies that follow certain structure for reporting financial statements.

To identify:

The principles that states business shall use same accounting procedures from period to period

Answer to Problem 1QC

Solution:

c. The Consistency principle states that business shall have same accounting procedures from period to period.

Explanation of Solution

a) Disclosure −As per the disclosure principle, the firm shall disclose all the relevant information that users of financial statements have a right to know. This information should cover the relevant, reliable and comparable information of the company so that users can use this information to make wise decisions.

b) Conservatism - The goal is to conserve the realistic figures. Its nature is to caution the reporting items in financial statements. Example- “Anticipate no gains, but provide for all losses”

c) Consistency - This principle means once it’s being adopted, it must be applied consistently in future. It helps investors and users of financial statements to easily and correctly compare financial statements of a company from one period to the next.

d) Materiality - The materiality concept applies when it would cause someone to change a decision regarding the information of material used. It is only significant for some items. It doesn’t include all the company. For example − The materials used in the company Apple is not that significant when compared to smaller firms.

Conclusion

The consistency principle states that business has same accounting procedures from period to period. All other principles like disclosure, conservatism and materiality concepts ignore the accounting procedures which carry from period to period.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

To determine

Accounting principles:The accounting principles are rules of action or conduct which are adopted by the accountants universally while recording accounting transactions. These guidelines are commonly associated with the theory and procedures of accounting of the companies that follow certain structure for reporting financial statements.

To identify:

The principles that states business shall use same accounting procedures from period to period

Answer 12

Answer to Problem 1QC

Solution:

c. The Consistency principle states that business shall have same accounting procedures from period to period.

Answer 13

Explanation of Solution

a) Disclosure −As per the disclosure principle, the firm shall disclose all the relevant information that users of financial statements have a right to know. This information should cover the relevant, reliable and comparable information of the company so that users can use this information to make wise decisions.

b) Conservatism - The goal is to conserve the realistic figures. Its nature is to caution the reporting items in financial statements. Example- “Anticipate no gains, but provide for all losses”

c) Consistency - This principle means once it’s being adopted, it must be applied consistently in future. It helps investors and users of financial statements to easily and correctly compare financial statements of a company from one period to the next.

d) Materiality - The materiality concept applies when it would cause someone to change a decision regarding the information of material used. It is only significant for some items. It doesn’t include all the company. For example − The materials used in the company Apple is not that significant when compared to smaller firms.

Answer 14

Conclusion

The consistency principle states that business has same accounting procedures from period to period. All other principles like disclosure, conservatism and materiality concepts ignore the accounting procedures which carry from period to period.

Answer 15

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Which principle or concept states that business should use the same accounting methods and procedures from period to period? Learning Objective 1 a. Disclosure b. Conservatism c. Consistency d. Materiality

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Answer to Problem 1QC

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