Consistency with reference to application of accounting procedures means:

All companies in the same industry should use identical accounting procedures

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Income & assets have not been overstated

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Accounting methods & procedures shall be followed on a uniform basis year after year

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Any accounting method can be followed as per convenience

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Solution

The correct option is C Accounting methods & procedures shall be followed on a uniform basis year after year
Consistency with reference to application of accounting procedures means accounting methods & procedures shall be followed on a uniform basis year after year.

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Similar questions

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

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

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

Niranjan & Co has been charging depreciation @ 20% per annum on Straight Line Method. It now wants to change the method to diminishing balance method, the rate of depreciation being 35% per annum. Can the company do so?

Or
As per consistency concept, a company cannot change an accounting policy. Does this hold true in all instances? Explain.

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Consistency with reference to application of accounting procedures means:

The correct option is C Accounting methods & procedures shall be followed on a uniform basis year after yearConsistency with reference to application of accounting procedures means accounting methods & procedures shall be followed on a uniform basis year after year.

The correct option is C Accounting methods & procedures shall be followed on a uniform basis year after year
Consistency with reference to application of accounting procedures means accounting methods & procedures shall be followed on a uniform basis year after year.