The 'Consistency' concept means that: MCQ with Answer and Explanation

Question
The 'Consistency' concept means that:
A. Only cash basis should be used
B. Accounting policies should be changed every year
C. Same accounting policies should be applied from one period to another
D. Different methods can be used arbitrarily
Answer: Option C
Solution (By JKSSB Mock Tests)
Consistency ensures comparability; accounting policies should be consistently applied over time, changes only for valid reasons.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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Practice More Accountancy and Book Keeping Questions

Question #1
A provision for discount on debtors is calculated on:
A. Debtors less Bad Debts less Provision for Doubtful Debts
B. Total Sales
C. Debtors less Bad Debts
D. Gross Debtors
Discuss
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Correct Answer: Option A

Explanation:
Discount is only offered to good debtors. Thus, it is calculated on the debtor balance remaining after deducting bad debts and provision for doubtful debts.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #2
The 'Non-Controlling Interest' (NCI) at acquisition date can be measured at:
A. Only fair value
B. Either fair value or proportionate share of net assets
C. Book value
D. Only proportionate share of net assets
Discuss
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Correct Answer: Option B

Explanation:
Ind AS 103 allows a choice.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #3
The 'Interim Financial Reporting' (Ind AS 34) suggests that the same accounting policies should be applied as in annual statements. This is an application of:
A. Materiality
B. Accrual
C. Going concern
D. Consistency
Discuss
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Correct Answer: Option D

Explanation:
Applying same policies ensures consistency.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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