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    Question

    The concept that requires a business to use the same

    accounting methods and policies from one period to the next is called:
    A Consistency Correct Answer Incorrect Answer
    B Conservatism Correct Answer Incorrect Answer
    C Materiality Correct Answer Incorrect Answer
    D Full Disclosure Correct Answer Incorrect Answer

    Solution

    The Consistency Concept dictates that once an accounting method or policy (e.g., depreciation method, inventory valuation method) is adopted, it should be applied consistently over time. This allows for meaningful comparison of financial statements across different periods.

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