Which of the Following Is a Conservative Accounting Practice

question 3

Multiple Choice

Which of the following is a conservative accounting practice?

• A)Change from double-declining balance to straight-line depreciation.
• B)Record sales revenue before it is actually earned.
• C)Adjust the allowance for uncollectible accounts to a larger amount.
• D)Record inventory at market rather than lower of cost or market.

---

Definitions:

Unconscious Thoughts

Ideas and feelings that exist outside of an individual's awareness, which can influence behaviors and attitudes.

Highly Subjective

Refers to judgments, perceptions, or interpretations that are deeply influenced by personal feelings, tastes, or opinions rather than external facts.

Empirical

Involves, engages with, or is proven through the act of observing or participating in experiences instead of relying on theoretical frameworks or logical deduction alone.

Cultural Heritage

The heritage composed of tangible objects and non-material qualities passed down from one generation to another within a community or society.