The application of conservatism means that judgments needed when uncertainty exists should not be made in a manner that affects the neutrality of the information presented.

Question

Quizplus · Accepted Answer

The application of conservatism is based on the principle of neutrality, which means that judgments made when uncertainty exists should be conservative or cautious in order to present information in a neutral manner that is not biased by optimistic or pessimistic assumptions. By applying conservatism, information is presented in a more reliable and transparent way, allowing users to make informed decisions based on accurate and unambiguous data.

The Application of Conservatism Means That Judgments Needed When Uncertainty