An Accountant Is Uncertain About the Best Estimate of an Amount

question 120

Multiple Choice

An accountant is uncertain about the best estimate of an amount for a business transaction.If two amounts are about equally likely,the amount least likely to overstate assets and income is selected.Which of the following qualities is characterized by this action?

• A)Comparability
• B)Conservatism
• C)Materiality
• D)Neutrality

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Definitions:

High-risk Positions

Jobs or roles that entail significant potential hazards or dangers, either physically, financially, or legally, often requiring specialized skills or knowledge to mitigate risks.

Production-oriented Leadership

A leadership style focused primarily on efficiency, output, and meeting organizational goals often at the expense of employee relations and satisfaction.

Written Rules

Explicit, documented guidelines that govern behavior and procedures within an organization.

Supervision

The process of directing, monitoring, and guiding individuals or activities to ensure that goals and standards are met.