CONSISTENCY PRINCIPLE Definition

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CONSISTENCY PRINCIPLE requires accountants to apply the same methods and procedures from period to period. When they change a method from one period to another they must explain the change clearly on the financial statements.

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SOCIAL COST is the cost to society as a whole from an event, action, or policy change. Includes negative externalities and does not count costs that are transfers to others, in contrast to private cost.

REPURCHASE AGREEMENT (REPO) is a contract in which an investor or securities dealer sells a United States security to a bank or other corporation and agrees to repurchase the security later at a specified time and price, including interest. The investment period ranges from one day to several months, and the purchaser earns interest competitive with money market rates.

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