An Accountant Is Uncertain About the Best Estimate of an Amount

question 20

Multiple Choice

An accountant is uncertain about the best estimate of an amount for a business transaction.When there are two possible amounts that could be recorded,the amount least likely to overstate assets and earnings 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:

Well-Being

The state of being comfortable, healthy, or happy, encompassing physical, mental, and emotional health.

Resources

Assets, materials, or other assets that are available to an individual, organization, or country, used to function effectively and achieve objectives.

Hindrance

An obstacle or barrier that prevents progress or makes it difficult for something to be achieved.

Stressor

Any physical or psychological factor that causes stress or tension in an individual.