Which of the Following Best Illustrates the Accounting Concept of Conservatism

Multiple Choice

Which of the following best illustrates the accounting concept of conservatism?

A) Use of the allowance method to recognize bad debt losses from credit sales
B) Use of the lower of cost or NRV approach in valuing inventories
C) Use of the same accounting method from one period to the next in calculating amortization expense
D) Utilization of a policy of deliberate understatement of asset values in order to present a conservative net income figure