The convention in accounting that strives to ensure business risks and uncertainties are adequately reflected in the financial statements is conservatism.

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Conservatism is a convention in accounting that requires caution in financial reporting to ensure that business risks and uncertainties are adequately reflected in the financial statements. This convention recognizes that uncertainty and risks are inherent in business transactions and seeks to avoid overstating assets and income while understating liabilities and expenses.

The Convention in Accounting That Strives to Ensure Business Risks