Which of the Following Best Illustrates the Accounting Concept of Conservatism

question 79

Multiple Choice

Which of the following best illustrates the accounting concept of conservatism?

• A)Use of the allowance method to recognize bad debt losses from credit sales
• B)Use of the lower of cost or market approach in valuing inventories.
• C)Use of the same accounting method from one period to the next in computing depreciation expense
• D)Utilization of a policy of deliberate understatement of asset values in order to present a conservative net income figure

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Definitions:

Stroke

A medical condition that occurs when the blood supply to part of the brain is interrupted or reduced, preventing brain tissue from receiving oxygen and nutrients.

Right Hand

Refers to the dominant hand for the majority of people, associated with manual tasks and activities requiring precision.

Motor Cortex

The area of the cerebral cortex responsible for planning, controlling, and executing voluntary movements.

Executes Movement

The execution of movement involves the activation and coordination of muscles and limbs to perform motor tasks, controlled by the nervous system.