Question

3. Conservatism Principles takes into account:
a) All future profits and losses
b) All future losses and not profits
c) All future profit and not losses
d) Neither profits nor losses of the future

Answer 1

Explanation:

The conservatism principle is the general concept of recognizing expenses and liabilities as soon as possible when there is uncertainty about the outcome, but to only recognize revenues and assets when they are assured of being received