Accounting Principles Questions With Verified Answers | UPDATED

Accounting Principles Questions With Verified Answers | UPDATED The consistency principle - ANSWER states that, once you adopt an accounting principle or method, continue to follow it consistently in future accounting periods. The full disclosure principle - ANSWER states that you should include in an entity's financial statements all information that would affect a reader's understanding of those statements. The materiality principle - ANSWER states that you are allowed to ignore an accounting standard if the net impact of doing so has such a small impact on the financial statements that a reader of the financial statements would not be misled. The reliability principle - ANSWER is the concept of only recording those transactions in the accounting system that you can verify are reliable with objective evidence. The time period principle - ANSWER is the concept that a business should report the financial results of its