finance and business?

D

Dejah

New member
A)Why do accountants follow the practice of conservatism?
B) what are the major consequences of this policy?
C) to what extent is conservatism undesirable in accounting practice?
 
A) I don't know how your class wants it answered, but its the old cliche, "err on the side of caution"

B) Comparability between companies all taking conservative approaches.

C) It is not very fair value oriented as in it doesn't reflect the actual business realities. This can reflect negatively on the business.
 
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