The comparison of the results of one accounting period with that in the past is possible when the following convention is followed:

Related MCQs

• The convention that states that the accounting practice should be followed consistently over the years
• P & L Account is prepared for a period of one year by following [Hints: (c) P&L A/C is prepared for a period of one year by following the concept of Accounting Period.]
• When stock is valued at cost in one accounting period and at lower of cost and Net realizable value in another accounting period
• 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.
• Accounting procedures and accounting practices should remain same from year to year under which of the following accounting principles:
• Which accounting concept or convention which, in times of rising prices, tends to understate asset values and overstate profits?
• The policy of anticipate no profit and provide for all possible losses is followed due to
• Anticipate no profits and provide for all possible losses. This is essence of which of the following accounting principles:
• The accounting process of gradually converting the unexpired cost of fixed assets into expenses over a series of accounting periods is
• Accounting Standard 1 requires the significant Accounting Policies to