_______ states that accounting report must belong to a common period a

SOLUTION

• Relevance– An accounting principle which states that financial information shall be relevant in order to be useful for the user.

• Comparability- It states that accounting report must belong to a common period and use common unit of measurement and format of reporting.

• Understandability- An accounting principle which states that the financial

information of a company shall be presented in such a way that a person with the reasonable knowledge & willingness shall be able to understand it.

• Reliability- An accounting principle which states that only those transactions shall be recorded in an accounting system which can be verified with objective evidence.