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:

Misperceptions

Incorrect understandings or interpretations of something or someone.

Cognitive Biases

Refers to systematic errors in thinking that affect decisions and judgments, often leading to irrational conclusions.

Frames

Frames in negotiations refer to the perspectives or viewpoints through which problems or issues are interpreted and understood by the parties involved.

Parties

Individuals or groups involved in a process, transaction, or dispute, each with their own interests and objectives.