Under the conservatism rule assets and income would be under

Under the conservatism rule, assets and income would be understated, rather than overstated.

True or False

Solution

As per conservative or prudence principal states that Assets and Incomes should not be overstated as well as Expenses and incomes should not be understated.

So given statement is False, which says that assets and incomes would be understated rather than overstated.