Conservatism Means

question 95

Multiple Choice

Conservatism means:

• A)not underestimating asset values.
• B)not overestimating liabilities.
• C)using the least optimistic measurement when faced with uncertainty about the reported amounts of assets and liabilities.
• D)always recording an asset at the amount it originally cost.

---

Definitions:

Cognitive

Relating to mental processes such as perception, memory, thought, and problem-solving.

Biological Foundations

The underlying biological processes and structures that influence human behavior, thought, and emotion.

Hawthorne Effect

The alteration of behavior by the subjects of a study due to their awareness of being observed.

Observational Techniques

Research methods that involve watching and recording behaviors or events as they naturally occur, without intervention by the researcher.