Which of the following concepts is of highest importance in recording asset values in recessionary times?
A) Unit of measurement
B) Historical cost
C) Going concern
D) Conservatism
E) Materiality

Question

Quizplus · Accepted Answer

Conservatism is the most important concept in recording asset values during recessionary times because it advises caution in reporting financial information and suggests reporting lower values of assets and revenues when uncertain, which is particularly relevant in economic downturns to avoid overstating financial health.

Which of the Following Concepts Is of Highest Importance in Recording