February 2007
Intermediate to advanced
288 pages
6h 32m
English
book
Crash Course in Accounting and Financial Statement Analysis, Second Edition
by Matan Feldman, Arkady Libman
Content preview from Crash Course in Accounting and Financial Statement Analysis, Second Edition
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Constraint 3: Consistency
For each company, the preparation of financial statements must utilize measurement techniques and assumptions that are consistent from one period to another.
As we will learn in Chapter 6, companies can choose among several different accounting methods to measure the monetary value of their inventories. What matters is that a company consistently applies the same inventory method across different fiscal years.
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