To provide for all possible losses and not to anticipate any profit is based on the convention of ........

General Accounting Principles Concepts of Accounting

To provide for all possible losses and not to anticipate any profit is based on the convention of.

Disclosure

Conservatism

Consistency

Materiality

- The statement "To provide for all possible losses and not to anticipate any profit" is aligned with the accounting principle of conservatism.

- Conservatism: Accountants should choose methods that least overstate assets and income. This avoids misleading financial statements.

The correct answer is: Option 2, Conservatism.

- Disclosure: All relevant financial information must be reported to stakeholders for sound decision-making.

- Consistency: The same accounting methods and principles should be used from period to period to ensure comparability.

- Materiality: Information is material if its omission or misstatement could influence the economic decisions of users.

Submit Error