Under the conservatism principle,liabilities and expenses would be overstated,rather than understated.

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The conservatism principle directs accountants to err on the side of caution and record liabilities and expenses at the highest possible value. This means that liabilities and expenses would be overstated, rather than understated, in order to provide a more realistic and conservative view of a company's financial standing.

Under the Conservatism Principle,liabilities and Expenses Would Be Overstated,rather Than