The term for the type of accounting that is slow to assume that good things have happened, and quick to assume bad things have happened, is
A) Aggressive accounting
B) Optimistic accounting
C) Cash-basis accounting
D) Conservative accounting

Question

Quizplus · Accepted Answer

Conservative accounting is the type of accounting that is slow to assume that good things have happened, and quick to assume bad things have happened. It is recognized as a more prudent approach to accounting, as it emphasizes caution and seeks to avoid any potentially misleading and overly optimistic statements about the financial position of a company.

The Term for the Type of Accounting That Is Slow