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.

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Definitions:

Mutualism

A type of symbiotic relationship between two organisms where both organisms benefit from the interaction.

Commensalism

A symbiotic relationship between two organisms where one benefits without harming or helping the other.

Co-operation

Working together towards common goals or mutual benefits, often involving sharing resources or coordinating efforts.

Competition

A biological interaction where individuals or species vie for the same resources, such as food or space, in an ecosystem.