Question: Consistency with reference to application of accounting principles refer to the a) All the companies in the same industries should use identical procedures and methods b) Income and assets have not been overstated c) Accounting methods and procedures used have to be consistently applied from year to year d) Any accounting method or procedure can be utilized.
Answer: (c) Description: According to consistency concept in order to achieve comparability of the financial statements of an enterprise through time, the accounting policies, accounting principles are followed consistently from one period to another. Thus, we can say that consistency with reference to application of accounting principles refer to the accounting methods and procedures used have to be consistently applied form year to year.
Question:
Consistency with reference to application of accounting principles refer to the a) All the companies in the same industries should use identical procedures and methods b) Income and assets have not been overstated c) Accounting methods and procedures used have to be consistently applied from year to year d) Any accounting method or procedure can be utilized. Answer:
(c) Description: According to consistency concept in order to achieve comparability of the financial statements of an enterprise through time, the accounting policies, accounting principles are followed consistently from one period to another. Thus, we can say that consistency with reference to application of accounting principles refer to the accounting methods and procedures used have to be consistently applied form year to year. Source: CoolInterview.com
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