Multiple choice

A business calculates stock at the end of every year according to FIFO or LIFO or weighted average method according to its suitability every year. Which accounting principle is violated?

  1. Going concern concept

  2. Accounting period concept

  3. Convention of consistency

  4. Concept of conservatism

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

It states that the business should be consistent in following the policies and methods of accounting. Thus, this principle is violated here.