Question

Why should accounting principles be applied consistently?

a) To maximize profits
b) To minimize taxes
c) To enhance financial reporting
d) To streamline payroll processes

Answer 1

Accounting principles should be applied consistently to enhance financial reporting.

Step-by-step explanation:

Accounting principles should be applied consistently to enhance financial reporting.

Consistency in applying accounting principles allows for reliable and comparable financial information, which is crucial for making informed decisions.

It ensures that financial statements are prepared using the same rules and methods, making it easier to analyze and compare the financial performance of different companies or periods.

Consistency also promotes transparency and helps in understanding the financial position of the business.