The convention that states that the accounting practice should be followed consistently over the years

Related MCQs

• The comparison of the results of one accounting period with that in the past is possible when the following convention is followed:
• Accounting procedures and accounting practices should remain same from year to year under which of the following accounting principles:
• Which of the following is true statement for computerised accounting system? a. the computer accounting system is based on the concept of database. b. Computer accounting system does not away with the concept of creating and maintaining journals, ledger etc.
• Which accounting concept or convention which, in times of rising prices, tends to understate asset values and overstate profits?
• The accounting process of gradually converting the unexpired cost of fixed assets into expenses over a series of accounting periods is
• Goodwill is to be calculated at one and half year’ purchase of average profit of last 5 years. The firm earned profits during 3 years as ₹ 20,000 ₹ 18,000 and ₹ 9,000 and suffered losses of ₹ 2,000 and ₹5,000 in last 2 years. The amount of goodwill will be
• Any change in the accounting policy relating to inventories which has a material effect in the current or later periods should be disclosed. This is in accordance with the accounting principle of:
• Which accounting concept specifies the practice of crediting closing stock to the trading account?
• Accounting Standard 1 requires the significant Accounting Policies to
• To convert the accounts prepared on cash system of accounting into mercantile system of accounting, which of these adjustments is not necessary