The basic accounting concept that refers to the tendency of accountants to resolve uncertainty in favour of understating assets and income is known as:
A)Conservatism.
B)Materiality.
C)Relevance.
D)Revenue recognition.

Question

Quizplus · Accepted Answer

The basic accounting concept that refers to the tendency of accountants to resolve uncertainty in favour of understating assets and income is conservatism. This means that if there is doubt or uncertainty about an asset's value or whether revenue should be recognized, then the accountant should err on the side of caution and report lower values for assets and delayed recognition of revenue. This principle helps to ensure that financial statements are not overstated and are more reliable for decision-making.

The Basic Accounting Concept That Refers to the Tendency of Accountants