consistency

Examples of consistency in the following topics:

• Reasons for a Conceptual Framework

  • A conceptual framework is a system of ideas and objectives that lead to the creation of a consistent set standards.
  • A conceptual framework can be defined as a system of ideas and objectives that lead to the creation of a consistent set of rules and standards.
  • With a sound conceptual framework in place the FASB is able to issue consistent and useful standards.

• Reporting Equity Investments

  • Investments recorded under the equity method usually consist of stock ownership of a company between 20% to 50%.

• Full-Disclosure Principle

  • Another good rule is—if you are not consistent, disclose all the facts and the effect on income.
  • The financial statements have been prepared using the generally accepted accounting principles which have been consistently applied;

• Inputs to Accounting

  • The journal entry can consist of several items, each of which is either a debit or a credit.
  • A bookkeeper is usually responsible for writing the "daybooks. " The daybooks consist of purchases, sales, receipts, and payments.
  • Each account in the general ledger consists of one or more pages.

• Valuing Notes Receivable

  • The entry would consist of debiting a bad debt expense account and crediting the respective accounts receivable in the sales ledger.

• Types of Long-Lived Assets

  • They usually consist of three possible types of investments: investments in securities (such as bonds), common stock, or long-term notes.

• Fundamental Concepts in Accounting

• Categories of Goods Included in Inventory

  • Its finished good inventory consists of all the filled and labeled cans of food in its warehouse that it has manufactured and wishes to sell to food distributors (wholesalers), to grocery stores (retailers), and even perhaps to consumers through arrangements like factory stores and outlet centers.
  • The manufacturer's finished good inventory consists of all the filled and labeled cans of food in its warehouse that it has manufactured and wishes to sell to food distributors (wholesalers), to grocery stores (retailers), and even perhaps to consumers through arrangements like factory stores and outlet centers.

• Events Triggering Disclosure

  • Consistency generally requires that a company use the same accounting principles and reporting practices through time.
  • However, consistency does not prohibit a change in accounting principles if the information needs of financial statement users are better served by the change.

• Costing Methods Overview

  • Note that a manufacturing business's inventory will consist of work in process, or unfinished goods, and finished inventory; the costs of unfinished and finished inventory contain a combination of costs related to raw materials, labor, and overhead.
  • On the other hand, a retailer's inventory consists of all finished products purchased from a wholesaler or manufacturer; the costs of their units are based on their acquisition cost rather than the costs associated with manufacturing units.