Question

Accounting principles and policies are to be standardised to achieve __________.

• A. Transparency
• B. Consistency
• C. Comparability
• D. All of the above

Answer 1

The correct option is D All of the above

Accounting principles and policies are to be standardised to achieve transparency, consistency and comparability.

Transparency means, the extent to which the financial users of statement have access to the financial statements.

Consistency is a quality that enables the comparison of financial statements from one accounting period to another by using the same accounting treatments for similar transactions.

Comparability means financial statements that help in easy inter-firm and intra-firm comparison.