Why Is Accounting Conservatism NOT a Basic Principle Underlying Accounting

question 72

Multiple Choice

Why is accounting conservatism NOT a basic principle underlying accounting standards in the People's Republic of China?

• A)It is perceived to manipulate accounting numbers for the benefit of owners by exploiting workers.
• B)It too closely reflects the views of the masses, which are not considered in establishing accounting standards.
• C)Conservatism has been shown to cause economic hardship for companies operating in China.
• D)Conservatism overstates assets, which is perceived to distort financial results.