The concept of conservatism is the capacity of information to make a difference in a decision.

Name: The concept of conservatism is the capacity of information to make a difference in a decision.
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Quizplus · Accepted Answer

The concept described is actually the definition of relevance in accounting, not conservatism. Conservatism in accounting is a principle that guides accountants to choose solutions that result in lower profits and asset valuations when faced with uncertainty, to avoid overstating financial health.

The Concept of Conservatism Is the Capacity of Information to Make