- 1 Marks
Question
The use of the same accounting principles from year to year so that the successive financial statements issued by a business entity will be comparable is known as…………………….
Answer
Consistency Principle
Explanation:
The Consistency Principle in accounting requires that a business consistently applies the same accounting methods and principles from one financial year to the next. This consistency enhances the comparability of financial statements over time, allowing stakeholders to analyze trends and make informed decisions based on reliable data.
- Tags: Accounting principles, Comparability, Consistency, Financial Statements
- Level: Level 3
- Topic: Audit of Complex Entities
- Series: NOV 2011
- Uploader: Dotse