Comparison of financial statements of one year with that of another year is possible only when ________ concept is followed.

Consistency

The correct answer is Option (3) - Consistency

The concept that enables the comparison of financial statements of one year with that of another year is the Consistency Concept. Consistency in accounting refers to the application of accounting principles and methods consistently over time. When a company follows consistent accounting policies and practices from one accounting period to another, it allows for meaningful comparisons of financial statements between different periods.