Question

Financial information demonstrates consistency when A. Firms in the same industry use different accounting methods to account for the same type of transaction B. A company applies the same accounting treatment to similar events from period to period C. A company fails to adjust its financial statements for changes in the value of the measuring unit. D. A company changes its estimate of the salvage value of a fixed asset

Answer 1

Answer: Option B

Step-by-step explanation: In accounting, consistency refers to the concept under which an organisation is recommended to record the similar event in a similar way for two different accounting periods.

However the change could be made but the impact and effect of it must be disclosed for the ease of the stakeholders.

Hence from the above we can conclude that the correct option is B .