Question

consevation concept of accounting

Answer 1

In accounting, the convention ofconservatism, also known as the doctrine of prudence, is a policy of anticipating possible future losses but not future gains. This policy tends to understate rather than overstate net assets and net income, and therefore lead companies to .

Answer 2

Conservation concept in simpler words

 The convention of conservatism, also known as the doctrine of prudence, is a policy of anticipating possible future losses but not future gains .

make provision for possible losses and not for profits