suggests that provision for loss against claim accepted must
The concept of
be made is :-
(a) Realisation
(b) Periodicity
(c) Conservatism
(d) All of the above
Answers
Answer:
don't know the answer sorry
Answer:
The correct option to this question is (c) Conservatism.
Explanation:
What Is Conservatism?
Accounting conservatism refers to a set of bookkeeping rules that need extensive verification before a business can legitimately claim any profits. The fundamental idea is to take the worst-case scenario of a company's financial future into account. According to the accounting conservatism principle, firm accounts must be prepared with prudence and extensive verification. Gains can only be recognized once they have been completely realized, whereas all probable losses are documented as soon as they are found. When faced with two potential solutions to an accounting problem, an accountant should choose the one that produces better results.
Thus, when it comes to financial reporting, conservatism is the strictest. It demands that revenues be disclosed in the same time frame as corresponding costs.