The Basic Accounting Concept That Refers to the Tendency of Accountants

question 21

Multiple Choice

The basic accounting concept that refers to the tendency of accountants to resolve uncertainty in favor of understating assets and revenues and overstating liabilities and expenses is known as

• A)the nocturne of conservatism.
• B)the materiality constraint.
• C)the substance over form principle.
• D)the industry practices constraint.

---

Definitions:

Total Revenue

The total amount of money received by a company for its goods or services before any expenses are subtracted.

Total Revenue

The total income generated by a firm from selling its goods or services.

Price Falls

A situation where the market price of a good or service decreases.

Total Revenue

The gross income a company generates from selling products or offering services, before deducting any costs.