Question

Which accounting principle makes it easy to make comparisons in financial statements for two consecutive years because of uniformity in currency?

Answer 1

The set of generally accepted accounting principles (GAAP) includes a specific provision relating to currency, known as the "monetary unit assumption". This states that the unit of measurement for economic activity will be U.S. dollars, and only dollar-denominated transactions are to be recorded. This measure ensures currency uniformity year-on-year.

Answer 2

Answer:

Which accounting principle makes it easy to make comparisons in financial statements for two consecutive years because of uniformity in currency?

Step-by-step explanation:

The US GAAP (Generally Accepted Accounting Principles) are generally accepted accounting principles, used by companies in the United States or listed on Wall Street.

The generally accepted accounting principles (GAAP) or financial information standards (NIF) are a set of general rules that serve as an accounting guide to formulate criteria related to the measurement of wealth and to the information of the patrimonial and economic elements of an entity. GAAP constitute parameters so that the preparation of the financial statements is based on uniform methods of accounting technique.

The answer is: US GAAP.