The accounting department of the Enterprise health plan adheres to the following policies: Policy A-Report gains only after they actually occur Policy B-Report losses immediately Policy C-Record expenses only when they are certain Policy D-Record revenues only when they are certain Of these Enterprise policies, the ones that are consistent with the accounting principle of conservatism are Policies

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The accounting principle of conservatism states that losses should be recognized immediately when they are probable, but gains should only be recognized when they are certain. Policies A, C, and D go against this principle by allowing gains and revenues to be reported only after they actually occur and when they are certain. Policy B aligns with the conservatism principle by requiring losses to be reported immediately, and Policy D also aligns by requiring revenues to be recorded only when they are certain. Therefore, the policies that are consistent with conservatism are A, B, and D.

The Accounting Department of the Enterprise Health Plan Adheres to the Following