Conservatism is
A)the requirement that businesses should intentionally understate assets.
B)the requirement that businesses should intentionally overstate liabilities.
C)the requirement that if an asset's value falls over time it will continue to be reported at its original cost.
D)the requirement that when faced with uncertainty about the numbers to report,accountants must use the least optimistic measure.

Question

Quizplus · Accepted Answer

Conservatism in accounting dictates that when there is uncertainty, accountants should choose the option that will least likely overstate assets and income, and least likely understate liabilities and expenses.

Conservatism Is