Which GAAP principle applies to consistency of accounting policies from period to period?

• A. Consistency
• B. Full Disclosure
• C. Valuation
• D. Going Concern

Answer: (A)

Consistency means applying accounting policies the same way from period to period. This uniform application lets you compare financial results over time without distortion, so trends and performance are meaningful. If a policy change is proposed, it must be justified, disclosed, and typically applied retroactively (with restatement of prior periods when practicable) to preserve comparability, which is the core idea behind this principle.

The other principles serve different purposes: Full Disclosure focuses on providing all relevant information to users; Valuation deals with how assets and liabilities are measured; Going Concern assumes the business will continue operating in the foreseeable future. They guide different aspects of financial reporting and do not specify the requirement to maintain the same policies year after year.