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

Question

Quizplus · Accepted Answer

Prudence (conservatism) convention is consistently applied in financial accounting to avoid overstatement of assets and income. Therefore, it will normally prevail over another convention in case of conflict.

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