The Conservatism Constraint Prescribes That

Multiple Choice

The conservatism constraint prescribes that:

A) When multiple estimates of amounts to be received or paid in the future are equally likely,then the least optimistic amount should be used.
B) A company use the same accounting methods period after period.
C) Revenues and expenses are reported in the period in which they are earned or incurred.
D) All items of a material nature are included in financial statements.
E) All inventory items are reported at full cost.