Financial information does not demonstrate consistency when
A. firms in the same industry use different accounting methods to account for the same type of transaction.
B. a company changes its estimate of the salvage value of a fixed asset.
C. a company fails to adjust its financial statements for changes in the value of the measuring unit.
D. a company changes its inventory method every few years in order to maximize reported income.
Answer:D
Financial information does not demonstrate consistency when
A. firms in the same industry use different accounting methods to account for the same type of transaction. B. a company changes its estimate of the salvage value of a fixed asset. C. a company fails to adjust its financial statements for changes in the value of the measuring unit. D. a company changes its inventory method every few years in order to maximize reported income.