Accounting rules practices and conventions should be observed continuously and applied ........

Principles of Accounting & Financial Management Concepts of Accounting

Download Solution PDF

Accounting rules, practices and conventions should be observed continuously and applied:

Convention of consistency

Convention of full disclosure

Convention of Conservatism

Convention of materiality

छोटे Courses बड़े Results

Master Concepts of Accounting

Prepare through Micro-courses

Try Now

Explanation:

In accounting, the convention in consistency is a principle that the same accounting principles should be used for preparing financial statements over a number of time periods.

This enables the management to draw important conclusions regarding the working of the concern over a longer period. It allows a comparison in the performance of different periods. If different accounting procedures and processes are used for preparing financial statements of different years then the results will not be comparable because these will be based on different postulates.