Commercial Applications
This principle states that accounting procedures and methods should remain consistent from one year to another.
- Materiality
- Consistency
- Conservatism
- Timeliness
GAAP
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Answer
Consistency
Reason — The Principle of Consistency requires that accounting methods and procedures (e.g., method of depreciation, method of stock valuation) should remain the same from one year to another so that the net profits of different years are comparable.
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