CFA Practice Question

There are 520 practice questions for this study session.

CFA Practice Question

Which principle of accounting requires the use of a single inventory method and also assumes that a change to another inventory method should be made only after careful analysis and evaluation?

A. Consistency
B. Realization
C. Full-disclosure
Correct Answer: Consistency requires that the same inventory method be used for each accounting period. However, if changing inventory costing methods will result in a more accurate presentation of the financial data of the firm, the change can be justified and initiated.

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