Which principle requires the same accounting method to be used?

• A. Principle of Method
• B. Principle of Continuity
• C. Principle of Prudence
• D. Principle of Periodicity

Answer: (A)

Using the same accounting method from one period to the next is about consistency. This principle ensures that financial statements are comparable over time, so users can reliably see how the business is performing without being misled by changes in measurement approaches. If a method must change, the change should be disclosed and handled in a way that preserves comparability (often with full explanation and, if required, restatement of prior periods).

The other principles address different ideas: going concern (the business is expected to continue operating) is about the entity’s future viability, not about method consistency; prudence (conservatism) is about avoiding overstating assets or income; and periodicity (reporting in defined time periods) is about dividing the business’s activities into reporting intervals, not about using the same method across those intervals.

So, the principle that requires using the same accounting method is the Principle of Method.