A measure of the extent to which reported income is conservative is called
A)ERISA.
B)a gain contingency.
C)the conservatism ratio.
D)a line of credit.

Question

Quizplus · Accepted Answer

The conservatism ratio measures the extent to which reported income is conservative, i.e. lower than it could be due to caution in accounting practices. The other choices are not related to measuring the conservatism of reported income.

A Measure of the Extent to Which Reported Income Is