Question

What is consistency principle of accounting?
Ans. According to this principle,a business continuous to prepare financial staements free form bias and useful to its user.
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Is this answer right or wrong? If wrong, then I can get marks. It was a 2marks question.

Answer 1

What is consistency principle of accounting?
Ans. According to this principle,a business continuous to prepare financial staements free form bias and useful to its user.



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True

Answer 2

The consistency principle 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.