The principle that suggests recording expenses only when

they are realized, and income only when they are certain, is known as:

A Conventions of consistency Correct Answer Incorrect Answer

B Money measurement concept Correct Answer Incorrect Answer

C Convention of conservatism Correct Answer Incorrect Answer

D Convention of full disclosure Correct Answer Incorrect Answer

Solution

The Convention of conservatism advises accountants to be cautious and recognize expenses and losses when probable, while only recognizing income when it is certain. This ensures a more prudent approach to financial reporting.

Practice Next

Relevant for Exams:

UPSC EO/AO

Thank You for posting your query. Please check your email for further guidance

Please Register/Login to Download Question