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In order to achieve comparability of the financial statement of an enterprises through time, the accounting policies are followed consistently from one period to another; a change in an accounting policy is made only in certain circumstances.
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What is the importance of computers in accounting?
Efficiency, accuracy, and consistency.
What type of accounting disclosure is required if consistency concept is not applied?
In accounting the consistency concept means that when a method of accounting is adopted it must be used consistently in the future. If the policy for accounting is changed in any way the nature of the change, the effects the change has on items in the financial statement and the reason for making the change must be fully disclosed by the business. If the consistency concept is not applied then disclosure of changes are made at the discretion of the business.
What is meant by consistency when discussing financial accounting information?
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.
Definition of consistency principle in accounting?
This pinciple of consistency means conformity from period to period with unchanging policies and procedures. It means that accounting methods adopted shouldn't be changed from year to year. It helps to eliminate personal bias and helps to achieve in comparable results.
Is accounting standard setting political in nature?
The setting of accounting standards and best practices is not political in nature. It is intended to ensure integrity and consistency throughout the profession.
What is the importance of computers in accounting?
Efficiency, accuracy, and consistency.
Financial information does not demonstrate consistency when?
A company changes accounting principle.
What type of accounting disclosure is required if consistency is not apply?
In accounting the consistency concept means that when a method of accounting is adopted it must be used consistently in the future. If the policy for accounting is changed in any way the nature of the change, the effects the change has on items in the financial statement and the reason for making the change must be fully disclosed by the business. If the consistency concept is not applied then disclosure of changes are made at the discretion of the business.
What type of accounting disclosure is required if consistency concept is not applied?
In accounting the consistency concept means that when a method of accounting is adopted it must be used consistently in the future. If the policy for accounting is changed in any way the nature of the change, the effects the change has on items in the financial statement and the reason for making the change must be fully disclosed by the business. If the consistency concept is not applied then disclosure of changes are made at the discretion of the business.
What are the objectives of public sector accounting?
Standards of consistency, quality, information sharing between Accountants, and transparency in reporting are the base objectives of public sectors accounting.
What is meant by consistency when discussing financial accounting information?
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.
What type of accounting disclosure is required if the concept of consistency is not applied in the analysis of financial statement?
check your answer
Definition of consistency principle in accounting?
This pinciple of consistency means conformity from period to period with unchanging policies and procedures. It means that accounting methods adopted shouldn't be changed from year to year. It helps to eliminate personal bias and helps to achieve in comparable results.
Why is the consistency and texture important?
You want your food to be perfect so consistency and texture is important to please your family/friends.
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?
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
Is accounting standard setting political in nature?
The setting of accounting standards and best practices is not political in nature. It is intended to ensure integrity and consistency throughout the profession.
