The comparison of the results of one accounting period with that in the past is possible when the following convention is followed:
A)Convention of Consistency
B)Convention of Full Disclosure
C)Convention of Materiality
D)Convention of Prudence

Question

Quizplus · Accepted Answer

The Convention of Consistency requires that the same accounting principles, policies, and practices are used from one period to the next, which allows for the meaningful comparison of financial results across different periods. This consistency is crucial for analyzing trends and making informed decisions based on past performance.

The Comparison of the Results of One Accounting Period with That