0
What is meant by consistency when discussing financial accounting information?
Wiki User
∙ 13y ago
Basic accounting concept that once an accounting method is adopted, it should be followed consistently from one accounting period to the next. If, for any reason, the accounting method is changed, a full disclosure of the change and an explanation of its effects on the items of the financial statements must be given in the accompanying notes (footnotes). One of the duties of an auditor is to make sure the consistency principle is being followed because, otherwise, any change might make interpretation of the financial data a futile exercise. Also called consistency concept. See also accounting concepts.
Wiki User
∙ 13y ago
Add your answer:
Earn +20 pts
How does cost accounting relates to management accounting and financial accounting?
cost accounting provides the basic information for both management and financial accounting.The similarities between government accounting and financial accounting is that both involves the balance of accounts.
What are the components of financial information system?
Funds management, financial accounting, controlling
Who are the primary users of financial accounting information?
creditors
How are cost accounting and financial accounting similar?
Simple answer: They both provide useful information to users. Thus is the true goal of accounting. Cost accounting users= managers Financial accounting user= shareholders
Since financial information is communicated in accounting terms. Accounting is said to be?
Language of business
Financial information does not demonstrate consistency when?
A company changes accounting principle.
Hoe does the concept of consistency aid in the analysis of financial statement?
How does the concept of consistency aid in the analysis of financial statements? What type of accounting disclosure is required if this concept is not applied?
What has the author Gary A Porter written?
Gary A. Porter has written: 'Using financial accounting information' -- subject(s): Accounting 'Using financial accounting information' -- subject(s): Accounting 'Financial accounting' -- subject(s): Accounting
What type of accounting disclosure is required if the concept of consistency is not applied in the analysis of financial statement?
check your answer
Which type of accounting information is intended to satisfy the needs of external users of accounting information?
Financial accounting
How does cost accounting connect with financial accounting and management accounting?
Management accounting gathered data or information from cost accounting and financial accounting. After that, it analyzes and interprets the data to prepare reports and provide necessary information to the management.
Describe the components and interrelationships of different categories of accounting?
The main categories of accounting include financial accounting, management accounting, and cost accounting. Financial accounting focuses on recording and reporting financial information for external users. Management accounting provides financial information to internal decision-makers and helps in budgeting, planning, and decision-making processes. Cost accounting analyzes the cost of manufacturing a product or providing a service. These categories are interrelated as the information produced in financial accounting is used by management accounting for decision-making, and cost accounting employs the techniques and information provided by both financial and management accounting.
How does cost accounting relates to management accounting and financial accounting?
cost accounting provides the basic information for both management and financial accounting.The similarities between government accounting and financial accounting is that both involves the balance of accounts.
Definition of ethics of accounting information?
Ethics of accounting information is providing accounting information to make good economic decisions in the financial statement of the organization.
Should a management accounting system provide both financial and non financial information?
accounting system provide both financial and non financial information.explain.
Accounting changes are often made and the monetary impact is reflected in the financial statements of a company even though in theory this may be a violation of the accounting concept of?
Consistency
Why do accounting analysts need accounting information?
To perform Financial Analysis on companies
