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Discuss the consistency concept in accounting?

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Wiki User
09/05/2010

Consistency is a concept used when applying accounting methods to a business, the business must continue to use that particular method. For an example if a company is charging depreciation using the straight line method, they must stick with the straight line method.

According to this concept,whatever accounting practices(whether logical or not) are selected for a given category of transactions,they should be followed from one accounting period to another to achieve compatibility

for example:if depreciation is charged according to a particular method it should be followed year after year for the purpose of comparision.