📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!

    Question

    A company follows FIFO method of inventory valuation

    every year. Which accounting principle is being followed?
    A Prudence Correct Answer Incorrect Answer
    B Accrual Correct Answer Incorrect Answer
    C Matching Correct Answer Incorrect Answer
    D Consistency Correct Answer Incorrect Answer

    Solution

    Valuing inventory using same method ensures comparability—this is the consistency principle.

    Practice Next
    More Accounts Questions
    ask-question