Question

comparison of financial position of one accounting period with that of the past is possible when ......concept is followed

• A. Consistency
• B. Cost
• C. Money measurement
• D. Full disclosure

Answer 1

Answer:

A. Consistency

Consistency Concept in accounting means that a business should use the same accounting methods and principles from one period to another. By doing this, financial statements of different periods are comparable, because changes in figures are due to actual business performance, not because the accounting method changed. Example: If a company uses the straight-line method for depreciation this year, it should use the same method next year. This allows investors or management to compare assets and expenses across years. ✅ So, following the consistency concept ensures meaningful comparison of financial statements across periods.