Question

Different accounting policies can be adopted in following area(s) _______.

• A. Charging depreciation
• B. Investment valuation
• C. Inventory valuation
• D. All of the above

Answer 1

Answer: (D)

All of the above

Consistency is the basic assumption and it is assumed that various policies or methods adopted by the firm while preparing the financial statement are consistent from one period to another. However, different firms may follow the different accounting policies on depreciation, investment valuation or inventory valuation.