Question

Differentiate between consistency principle and conservatism principle

Answer 1

Answer:

hy dude ur answer is

Explanation:

principle of consistency- The consistency principle states that, once you adopt an accounting principle or method, continue to follow it consistently in future accounting periods

principle of conservatism assumption - Under the conservatism principle, if there is uncertainty about incurring a loss, you should tend toward recording the loss. Conversely, if there is uncertainty about recording a gain, you should not record the gain.

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Answer 2

Answer:

hi here is the answer....

conservatism principle ...... Conservatism principle is the general consept of recognizing expenses and liability as soon as possible when there is uncertainty about the outcome, but to only recognize revenues and assets when they are assumed of being recieved . The conservatism principle is only a guideline .

Consistency principle ......it states that, once you adopt an accounting principle or method , continue to follow it consistently in future accounting periods. Only change an accounting principle or method if the new version in some way improves reported financial results .

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