The goal of reporting realistic figures and never overstatin

The goal of reporting realistic figures and never overstating assets or net income applies to the

a. conservatism principle

b. materiality concept

c. disclosure principle

d. consistency principle

Solution

The answer is Option a The goal of reporting realistic figures and never overstating assets or net income applies to the conservatism principle This principle recognises expenses and liabilities as soon as possible when there is uncertainty about the outcome but to only recognise revenues and assets when they are assured of being received.