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Consistency Principle and Disclosure Principle

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Discuss how the consistency principle and the full disclosure principle affect inventory valuation, include examples?

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This solution gives a detailed explanation of how the consistency principle and the full disclosure principle affect inventory valuation. Examples are included to give the student a clear understanding of the topic.

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Consistency Principle and Disclosure Principle Affect on Inventory valuation

The consistency principle states that business should use the same accounting methods and procedures from one period to the next. Consistency allows the accountant and investors to make a comparison of one financial statement for one with another financial statement of the next year.
Example
Suppose you are analyzing a company's net income ...

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