Which of the Following Is a Conservative Accounting Practice

question 57

Multiple Choice

Which of the following is a conservative accounting practice?

• A)The use of a longer service life for depreciation.
• B)Waiting to record a litigation loss.
• C)Recording a lower amount for bad debt expense.
• D)Taking an asset write-down early.

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Definitions:

Above Average

Describes a level of performance, capability, or measurement that exceeds the normal or expected standard.

Roots of Prejudice

Foundational aspects or underlying causes that lead to prejudiced attitudes and discriminatory behavior towards others.

Overestimate Similarity

The tendency to think that different elements or situations are more alike than they actually are.

Discriminate Outsiders

The act of treating individuals or groups differently, often negatively, because they are perceived as not belonging to a certain group or community.