Conservatism requires that special care must be taken to avoid which of the following?
A)Overstating assets and liabilities and understating revenues and expenses.
B)Understating assets and liabilities and overstating revenues and expenses.
C)Overstating assets and revenues and understating liabilities and expenses.
D)Understating assets and revenues and overstating liabilities and expenses.

Question

Quizplus · Accepted Answer

Conservatism is concerned with overstating revenues and assets and with understating expenses and liabilities.

Conservatism Requires That Special Care Must Be Taken to Avoid