Which of the following is a conservative accounting practice?

Question

Quizplus · Accepted Answer

The write-down of overvalued inventory is a conservative accounting practice as it reduces the reported value of assets, resulting in a lower net income and a more cautious financial statement. The other options are not conservative accounting practices - A prolongs the useful life of assets, B delays recognition of a known loss, and C reduces the allowance amount for uncollectible accounts.

Which of the Following Is a Conservative Accounting Practice