Question

What is the consistency principle?

Answer 1

(A) All the companies in an industry should use the same accounting procedure

(B) A company can change an accounting principle as often as it wants

(C) Once chosen, the same accounting method should be applied in all periods

(d) A company can change an accounting method for any reason

Answer (C): Once chosen, the same accounting method should be applied in all periods

Explanation: The consistency rule expresses that, when you take on an accounting standard or strategy, follow it reliably in future accounting periods, so that the outcomes revealed from one period to another are comparable.