Which of the following accounting conventions would an accountant most likely apply when facing major uncertainties?
A) Full disclosure
B) Conservatism
C) Materiality
D) Consistency

Question

Quizplus · Accepted Answer

When facing major uncertainties, an accountant would most likely apply the convention of conservatism, which means choosing the option that results in lower profits or higher liabilities in order to avoid overstating the financial position of the company. This helps to ensure that the financial statements are not misleading and provide a more accurate picture of the company's financial health.

Which of the Following Accounting Conventions Would an Accountant Most