Home › CS Executive › corpacc › Introduction to Financial and Corporate Accounting › Consistency is listed by the lesson as one of th…
Consistency is listed by the lesson as one of the accounting constraints. Which statement best captures the Consistency constraint?
Answer & Solution
Correct answer: D.
1. Consistency is one of the listed constraints.
2. It requires that accounting policies, once chosen, be applied consistently across periods.
3. The aim is to make comparisons of statements across periods meaningful for users.
4. Perpetual immutability, industry uniformity and shareholder voting are not the consistency constraint.
_Source: ICSI CS Executive Paper 5 (Corporate and Management Accounting) — Lesson 1 & 2: Introduction to Financial and Corporate Accounting, pp. v–vii and x._
Related questions
The lesson sketches a nine-step accounting cycle. Which step is described in the cycle as The Time Period assumption is one of the four listed accounting assumptions. Which statemeThe Business Entity assumption is one of the four listed accounting assumptions. Which staAccounting Standards (AS) are described in the lesson as written policy documents issued bRevenue Realisation is listed in the lesson as an accounting concept. Under this concept, Full Disclosure is listed by the lesson as one of the accounting concepts. Which statementThe Matching concept is listed by the lesson alongside Revenue Realisation under the broadThe lesson cites Historical Cost as an accounting concept. Which statement best captures t