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Commerce · Q1277

Accounting

Graduate and Post Graduate · Commerce · question 1277

Q1277

The application of the concept of conservatism in accounting:

A.
results in higher profits and lower liabilities
B.
requires the accountant not to anticipate profits, but to provide for all possible losses
Answer
C.
required the managers always to match effort to accomplishment
D.
does not allow any deviation from the policies or practices followed in the past

Answer: Option B

Solution

Answer: Option B
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