An accountant is uncertain about the best estimate of an amount for a business transaction.When there are two possible amounts that could be recorded,the amount least likely to overstate assets and earnings is selected.Which of the following qualities is characterized by this action?

Question

Quizplus · Accepted Answer

This action is an example of conservatism, which means that when in doubt, the accountant should choose the option that is least likely to overstate assets and earnings. This approach is more cautious and conservative, and it helps to avoid overvaluing the company's financial position.

An Accountant Is Uncertain About the Best Estimate of an Amount