The basic accounting concept that refers to the tendency of accountants to resolve uncertainty in favor of understating assets and revenues and overstating liabilities and expenses is known as
A)the nocturne of conservatism.
B)the materiality constraint.
C)the substance over form principle.
D)the industry practices constraint.

Question

Quizplus · Accepted Answer

The basic accounting concept described is conservatism, which states that accountants should err on the side of caution and record transactions in a way that understates assets and revenues and overstates liabilities and expenses. This results in a more conservative presentation of the financial statements, providing a more accurate picture of the company's financial position.

The Basic Accounting Concept That Refers to the Tendency of Accountants