alleryStart learning →Why are the same accounting policies normally used every period?
ATo reduce audit fees
BTo avoid paying tax
CTo raise share prices
DTo compare over time
Answer & Solution
Correct answer: D. To compare over time
Consistent policies let users compare statements over time and spot trends in position and performance.
Keep practising AS 5 Net Profit or Loss for the Period, Prior Period Items and Changes in Accounting Policies
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