Question 36
Accounting Concepts and Conventions"The Accountant thinks the investment in the books are worthless." This is
- A.consistency concept
- B.objectivity concept
- C.conservatism concept
- D.money measurement concept.
Show the answer and explanation
Answer: C (conservatism concept)
Explanation
Writing down an asset the accountant believes has lost its value is being cautious, the conservatism (prudence) concept.