conservatism principle

What Is The Effect Of Conservative Convention?

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What Is The Effect Of Conservative Convention? The convention of conservatism will have the effect of understatement of assets. According to conservatism principle all the anticipated losses and expenses should be taken into account in advance, but all the anticipated incomes should not be recorded in advance. What is the importance of conservatism principle? Conservatism

What Is The Principle Of Conservatism?

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What Is The Principle Of Conservatism? In accounting, the convention of conservatism, also known as the doctrine of prudence, is a policy of anticipating possible future losses but not future gains. … In accounting, it states that when choosing between two solutions, the one that will be least likely to overstate assets and income should