The accounting convention which results in the anticipation of losses but not of profits is:
A)matching.
B)prudence (conservatism).
C)going concern.
D)none of the above.

Question

Quizplus · Accepted Answer

The prudence (conservatism) convention suggests that accountants should anticipate losses and expenses, but should not anticipate gains or income unless they are reasonably certain. This ensures that financial statements do not overstate the financial position or performance of the entity.

The Accounting Convention Which Results in the Anticipation of Losses