Which of the following requires that financial statements should report the least favorable figures?

Question

Quizplus · Accepted Answer

The conservatism principle requires that financial statements should report the least favorable figures to avoid overstating assets and income or understating liabilities and expenses. This principle is used to ensure that financial statements are reliable and not overly optimistic, which could mislead investors and other stakeholders. The materiality concept and disclosure principle relate more to the significance of information and how it should be presented, while the consistency principle ensures that accounting methods are used consistently over time.

Which of the Following Requires That Financial Statements Should Report