In uncertain circumstances, the conservatism principle guides accountants to
A)accelerate revenue recognition and delay expense recognition.
B)accelerate expense recognition and delay revenue recognition.
C)recognize expense of prepaid items when payment is made.
D)maximize reported net income.

Question

Quizplus · Accepted Answer

The conservatism principle guides accountants to choose the alternative that produces the lowest net income, which causes them to accelerate expense recognition and delay revenue recognition.

In Uncertain Circumstances, the Conservatism Principle Guides Accountants to