Question

Window Help edugen.wileyplu Ch.2 Wiley Plus MC Flashcards | Quizlet Accounting Chapter 2 Flas Return to Blackt Kimmel, Financial Accounting, 9e Help System Announcements Question 12 The quality of consistency is a type of O relevance. faithful representation. O materiality. O comparability. Click if you would like to Show Work for this question: Open Show Wc

Answer 1

Explanation:

Definition of principle of consistency:

Principle of consistency refers to following the same accounting principles, methods, procedures which are adopted by organisation at the initial stage for the preparation of financial statements and followed year after the other.
The principle of consistency is followed by the organisation. so, that the results are reported from period to period are comparable, therefore option D is correct answer i.e quality of consistency is "compatibility".

Other Options

option A is incorrect because relevance is a quality of assertion. That all the important data is presented in financial statement. non financial data are not included in financial statement.

Option B is incorrect because faithful representation is a quality of financial statement that reflects that financial statement is unbaised, correct, complete and error free.

Option c is incorrect as materiality is a concept that financial statement presents all the significant matters. Such as materiality/ significance of error or frauds , or transactions or other balances.