Keyword Analysis & Research: consistency meaning in accounting


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Frequently Asked Questions

What is the principle of consistency?

What is the Consistency Principle? Consistency Principle states that all accounting treatments should be followed consistently throughout the current and future period unless required by law to change or the change gives a better presentation in accounts.

What is consistency concept?

The consistency concept refers to the situation where an enterprise should adopt an accounting principle or method, continue to follow it consistently in future accounting periods. In simple words, it states that all accounting treatments should be followed consistently throughout the current and future period unless required by law to change or the change gives a better presentation in accounts.

What is a good accounting principle?

Principle of Periodicity: Reporting of revenues is divided by standard accounting periods, such as fiscal quarters or fiscal years. Principle of Materiality: Financial reports fully disclose the organization's monetary situation. Principle of Utmost Good Faith: All involved parties are assumed to be acting honestly.

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