The Framework in relation to conservatism:
A)Explicitly states that conservatism is a bias to be avoided
B)Requires that no profits be anticipated but all losses must be anticipated
C)Is not explicit about the application of conservatism
D)Because of conservatism requires a higher standard of evidence for the recognition of expenses than for revenue

Question

Quizplus · Accepted Answer

The framework is not explicit about the application of conservatism, meaning it does not specifically state how conservatism should be applied in accounting practices. It acknowledges the concept but does not provide detailed guidance on its application.

The Framework in Relation to Conservatism