acc-220 - week 3 dq 2 - years results over a phase of time...

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A feature that is capable of affecting the capability of many businesses is his or her option of accounting or fiscal year-end. Many businesses decide to finish their accounting year when inventory or processes are at a low. This is beneficial because collecting accounting information entails a lot time and effort by managers, so they would rather do it when they are not as demanding in the company. In addition, inventory is easier and with a reduction of cost to add up when it is low. The accounting data that managers often track for a business throughout the financial
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Unformatted text preview: years results over a phase of time of being in consistence. Consistency means that a business uses the similar accounting values and techniques from year to year. Therefore, if a business chooses one inventory accounting technique in the first year of operations, it is likely to keep on using that similar technique in following years. When financial data has been accounted on a consistent basis, the financial statements allow meaningful analysis of trends within a business....
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