The Conservatism Principle in Accounting Means That a Company Should

Multiple Choice

The conservatism principle in accounting means that a company should:

A) use the same accounting methods and procedures from period to period.
B) report enough information in its financial statements for outsiders to make knowledgeable decisions about the company.
C) perform strictly proper accounting for items and transactions that are significant to the company's financial statements.
D) report items in the financial statements at amounts that lead to the most pessimistic immediate financial results.