Question

identify the accounting concept which state following :-(2) same accounting methods should be used from one accounting period to the next accounting year.​

Answer 1

Answer:

Consistency Principle

Answer 2

This idea is stated by the Consistency concept.

Explanation:

• The consistency principle asserts that once decided on an accounting method or principle to use in the business, the management needs to stick with and obey this method or principle steadily throughout the accounting periods.

• The sole purpose of this principle is to guarantee that events or transactions are recorded in the same manner, from one accounting year to the next.

• In other words, companies should not use one accounting method one year, and a dissimilar accounting method the next year.  

• Although, this doesn’t mean that businesses are obliged to stick with the same accounting method forever, they are permitted to change their method, but this modification will need to be accounted for.