The consistency principle requires a company to use the same accounting methods period after period,so that financial statements are comparable across periods.

Question

Quizplus · Accepted Answer

The consistency principle is a fundamental accounting principle that requires companies to use the same accounting methods and procedures from period to period to ensure that financial statements are comparable across different periods. Consistency in accounting helps to promote transparency and optimal use of information resources for decision-making. Thus, the statement is true.

The Consistency Principle Requires a Company to Use the Same