An accountant is uncertain about the best estimate of an amount for a business transaction.If two amounts are about equally likely,the amount least likely to overstate assets and income is selected.Which of the following qualities is characterized by this action?
A)Comparability
B)Conservatism
C)Materiality
D)Neutrality

Question

Quizplus · Accepted Answer

This action is characterized by conservatism, which is a quality of accounting that requires accountants to choose the option that least likely overstates assets and income.

An Accountant Is Uncertain About the Best Estimate of an Amount