Creating Provision against fluctuation in the price of investment is an example of which accounting ...........

Accountancy (Phase -I & II) Concepts of Accounting

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Creating Provision against fluctuation in the price of investment is an example of which accounting convention

Convention of conservatism

Convention of full disclosure

Convention of materiality

Convention of consistency

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Explanation:

In accounting, the convention of conservatism, also known as the doctrine of prudence, is a policy of anticipating possible future losses but not future gains. This policy tends to understate rather than overstate net assets and net income, and therefore lead companies to "play safe"