If the prudence (conservatism)convention conflicts with another convention, which will normally prevail?
A)Prudence (conservatism).
B)The other convention.
C)50% of the time prudence and 50% of the time the other convention.
D)Conventions never conflict so the issue does not arise.

Question

Quizplus · Accepted Answer

The prudence (conservatism) convention usually prevails because it guides accountants to choose the solution that leads to understate rather than overstate assets and income, thus providing a more cautious and less optimistic view of a company's financial position.

If the Prudence (Conservatism)convention Conflicts with Another Convention, Which Will