The Conservatism Constraint

Multiple Choice

The conservatism constraint:

A) Requires that when more than one equally likely estimate of amounts is expected to be received or paid in the future,then the less optimistic amount should be used.
B) Requires that a company use the same accounting methods period after period.
C) Requires that revenues and expenses be reported in the period in which they are earned or incurred.
D) Requires that all items of a material nature be included in financial statements.
E) Requires that all inventory items be reported at full cost.