What is conservatism and why is it important in accounting?
Conservatism is taking the route that will be least likely to overstate assets or income. It is used in situations in which there is uncertainty about how to account for a particular item. In accounting, it is used in the balance sheet and income statement in an effort to provide the least optimistic amount.
You might also like to view...
How are computer system flowcharts and program flowcharts related?
A logical interpretation of facts and other information is called what?
A) Summary B) Data manipulation C) Conclusion D) Paraphrasing E) Recommendation
Explain affective neuroscience and provide an organizational example.
What will be an ideal response?
Small businesses' assets such as buildings should be financed with short-term loans.
Answer the following statement true (T) or false (F)