The accounting convention of _____ means selecting the method of measurement that yields the gloomiest immediate results.
A)cost benefit
B)objectivity
C)materiality
D)conservatism

Question

Quizplus · Accepted Answer

Conservatism is the accounting convention that means selecting the method of measurement that yields the most pessimistic immediate results. This approach helps to reduce the chances of overstating assets or income and understating liabilities or expenses. It is also known as the "principle of prudence."

The Accounting Convention of _____ Means Selecting the Method of Measurement