Multiple choice

____________ principle requires that the same accounting method should be used from one accounting period to the next.

  1. Conservatism

  2. Consistency

  3. Business entity

  4. Money measurement

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The consistency principle requires that the same accounting methods and policies be used from one accounting period to the next. This ensures comparability of financial statements across different periods, allowing users to identify trends and make meaningful comparisons.