concept states that accounting procedures and practices should remain same from year to year.

Timeliness

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Conservatism

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Consistency

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Materiality

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Solution

The correct option is C Consistency
Consistency concept states that accounting procedures and practices should remain same from year to year. Consistency requires that a company's financial statements follow the same accounting principles, methods, practices and procedures from one accounting period to the next.

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Similar questions

Q. Accounting procedures and accounting practices should remain same from year to year under which of the following accounting principles:

Q. Which convention implies that the accounting practices should remain same from one year to another year?

Q. Accounting rules, procedures and methods should be observed alike and should not be changed from year to year. This is called accounting convention of __________.

Q. Match List-I with List-II and select the correct answer using the codes given the lists.

List-I(Accounting concept)	List-II(Principle involved)
I. Consistency	(a) Losses are anticipated and accounted for in advance but profits are not accounted for until realised
II. Comparability	(b) All the relevant financial information should be summarised and presented in the accounting statements
III. Conservatism	(c) According procedures in an entity should be followed uniformly from period to period
IV. Disclosure	(d) Accounting statement of different periods of an entity and those of different entities of a period should be based on the same accounting principles and procedures
	(e) Personal Judgement of accountants should not influence accounting measurements

Complete the following worksheet

(i) If a firm believes that some of its debtors may default, it should act on this by making sure that all possible losses are recorded in the books. This is an example of the ___ concept.

(ii) The fact that a business is separate and distinguishable from its owner is best exemplified by the ___ concept.

(iii) Everything a firm owns, it also owns out to somebody. This coincidence is explained by the ___ concept.

(iv) The ___ concept states that if the straight-line method of depreciation is used in one year, then it should also be used in the next year.

(v) A firm may hold stock which is heavily in demand. Consequently, the market value of this stock may be increased. Normal accounting procedure is to ignore this because of ___

(vi) If a firm receives an order for goods, it would not be included in the sales figure owing to ___

(vii) The management of a firm is remarkably incompetent, but the firm's accountants cannot take this into account while preparing the book of accounts because of ___ concept.

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