Which of the Following Describes the Conservatism Constraint

Multiple Choice

Which of the following describes the conservatism constraint?

A) A business should avoid overstating assets and revenues and avoid understating expenses and liabilities.
B) The benefits of accounting for and reporting information should outweigh the costs.
C) If the dollar amounts involved are large enough to influence a user's decisions the data is considered to be relevant.
D) The conservatism constraint produces a higher net income and stockholders' equity.