Question

Explain the accounting convention Conservatism.

Answer 1

In accounting, the convention of conservatism, 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

in simple words conservatism concept
anticipate all the losses but not gains 

make provision for all anticipate losses .