Conservatism Means

question 36

Multiple Choice

Conservatism means:

• A)not underestimating asset values.
• B)not overestimating liabilities.
• C)using the least optimistic measurement when faced with uncertainty about the value of assets and liabilities.
• D)using the most optimistic measurement when faced with uncertainty about the value of assets and liabilities.

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Definitions:

Continued Use

The ongoing or persistent engagement in an activity or the utilization of a product or substance over time.

Solution

Solution is a means of solving a problem or dealing with a difficult situation.

Capture Errors

Describes mistakes that occur when a routine action is inadvertently captured by a stronger habit and proceeds automatically in the wrong direction.

A-not-B Error

A cognitive error observed in infants, where they search for an object at its initial hiding place (A) even after seeing it moved to a new location (B).