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

Grasp the appropriate duration and frequency of physical activity for health benefits.

Learn healthy weight loss strategies and the importance of a diverse, balanced diet.

Understand the significance of good health for personal and professional life.

Identify effective money management strategies.

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Definitions:

Political Economy

An interdisciplinary branch that studies the relationship between individuals, societies, and governments, focusing on how economic theories affect policies and social issues.

Comparative Advantage

The capacity of a person, business, or nation to create a product or offer a service with a lesser opportunity cost compared to its rivals.

Adam Smith

A Scottish economist and philosopher, known as the "father of modern economics" for his influential works on the nature and causes of the wealth of nations, promoting the idea of free market economies.