Which accounting principles is followed in adopting policy of using WDV method of Depreciation year after year ?

Prudence

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Materiality

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Consistency

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All of these

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Solution

The correct option is C Consistency
Consistency principle means that the company should use same accounting principles year after year for better comparison of Financial statements. Hence, using WDV method of depreciation year after year is following consistency principle.

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Similar questions

(a) Describe various branches of accounting.

(b) The management of ABC Ltd. changed the depreciation method for the last three years. Which principle is not followed?

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