The concept of applying the accounting treatment that results in the lowest,most conservative,estimate of net income for the period is called the matching principle.

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The matching principle in accounting refers to the practice of recognizing expenses in the same period as the revenues they help to generate, not necessarily resulting in the lowest estimate of net income. The concept described in the question more closely aligns with the conservatism principle, which advises erring on the side of caution and choosing the method that least overstates assets and income.

The Concept of Applying the Accounting Treatment That Results in the Lowest,most