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Commerce · Q336

Accounting

Graduate and Post Graduate · Commerce · question 336

Q336

The concept that "an accountant shouldn't anticipate profit, but must provide for all losses"

A.
Conservation concept
Answer
B.
Consistency concept
C.
Materiality concept
D.
Reduction concept

Answer: Option A

Solution

Answer: Option A
Solution:
Conservation concept states that "an accountant shouldn't anticipate profit, but must provide for all losses". The concept that an accountant shouldn't anticipate profit, but must provide for all losses is known as The conservatism concept.