Which principle requires the use of consistent accounting methods?

The principle that requires the use of consistent accounting methods is the Consistency principle. This principle ensures that once a company chooses a specific accounting method, it should continue to use that method for similar transactions in future accounting periods. This consistency allows for accurate financial reporting over time and enhances the comparability of financial statements.

When a business applies its accounting policies consistently, it provides users of financial statements—such as investors, creditors, and management—with reliable information. This reliability improves the decision-making process because users can more easily compare performance across different periods and assess trends.

On the other hand, while relevance, comparability, and reliability are all important concepts in accounting, they serve different purposes. Relevance indicates that financial information should be pertinent and helpful for decision-making. Comparability allows users to identify similarities and differences between financial reports of different entities. Reliability focuses on the accuracy and verifiability of financial information. However, none of these principles directly mandates the consistency of accounting methods as the Consistency principle does.