A larger estimation of the allowance for uncollectible accounts,the write-down of overvalued inventory and the use of a shorter useful life for depreciation are all examples of conservative accounting.

Question

Quizplus · Accepted Answer

These actions all reflect a cautious approach to accounting, where the company is preparing for potential losses or decreases in asset value. This approach is known as conservative accounting.

A Larger Estimation of the Allowance for Uncollectible Accounts,the Write-Down