The conservatism principle is concerned with the possibility of understating assets or income. a. true b. false

the conservative principle asserts that when preparing financial statements, accountants should take care to avoid overstating assets or income.

What does the accounting conservatism principal entail?

In the event of any ambiguity, the conservatism principle of accounting directs the accounting. Recognizing all costs and obligations is necessary.

What is the concept of conservatism?

We can claim that the Concept of Prudence is another name for the Concept of Conservatism. The lower of cost or market rule, which states that inventory should be reported lower than its acquisition cost or the current market value, is primarily based on the idea of conservatism.

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