Consistency aids comparability when a company uses the same accounting principles and methods from year to year or when companies with similar circumstances use the same accounting principles.

Question

Quizplus · Accepted Answer

Consistency in using the same accounting principles and methods over time allows for meaningful comparison of financial statements from one period to another within a company, and comparability across companies with similar circumstances using the same accounting principles enhances the usefulness of financial information for decision-making.

Consistency Aids Comparability When a Company Uses the Same Accounting