Question

Which Accounting Convention states that same accounting principles should be used for

preparing financial statements year after year. Explain that convention.​

Answer 1

Answer:

Principal of Consistency :-

All accounting principles and methods should be applied in a similar way from one period to the next so that data reported in financial statements can be compared for one period with that of another period. Method may be changed by the company but it should be disclosed along with its impact on profit and loss.