Accounting for IGCSE & O level - Advanced Principles (Section 5 - No. 33)
Under the principle of consistency, which of the following is crucial?
All financial statements are prepared on the same date.
The same accounting methods are used from one accounting period to the next.
The same accounting software is used in each period.
All transactions are recorded on the same day.
Explication
Consistency ensures that accounting methods are applied uniformly to make the financial results of different periods comparable.