The Basic Accounting Concept That Refers to the Tendency of Accountants

question 2

Multiple Choice

The basic accounting concept that refers to the tendency of accountants to resolve uncertainty in favor of understating assets and revenues and overstating liabilities and expenses is known as

• A) the doctrine of conservatism.
• B) the materiality constraint.
• C) the substance over form principle.
• D) the industry practices constraint.

---

Definitions:

Wheeled Coach

A reference to a company or concept in the context of efficient manufacturing or service processes, possibly related to emergency vehicles.

Competitive Advantage

The attributes or conditions that allow a company to produce goods or services better or more cheaply than its competitors.

MRP System

Material Requirements Planning System; a computer-based inventory management system designed to assist in production planning and inventory control.

Economic Part Period

A method in inventory management that determines the optimal order size by balancing order costs against holding costs over time.