Conservatism Is

question 38

Multiple Choice

Conservatism is

• A)the requirement that businesses should intentionally understate assets.
• B)the requirement that businesses should intentionally overstate liabilities.
• C)the requirement that if an asset's value falls over time it will continue to be reported at its original cost.
• D)the requirement that when faced with uncertainty about the numbers to report,accountants must use the least optimistic measure.

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Definitions:

Gastrointestinal Motility

The process by which the muscles of the gastrointestinal tract move content through the digestive system.

Constipation

Condition characterized by difficulty in passing stool or an infrequent passage of hard stool.

Abdominal Distention

The condition of having an enlarged or swollen abdomen.

Deficient Fluid Volume

A medical condition where there is a lower than required volume of fluid in the body, also known as dehydration, leading to various health issues.