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The principle of consistency states that: Companies are prohibited from ever changing their accounting methods. Every company in the same industry must use the same

The principle of consistency states that:

Companies are prohibited from ever changing their accounting methods.

Every company in the same industry must use the same accounting principle.

There must be a consistent blend to the accounting principles.

If changes in accounting principles are made, the reasons for the change and the effects on the company's net income must be disclosed.

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