Recognizing expected losses Immediately, but deferring expected galns, is an example of: Multiple Choice o Cost-effeaiveness...

Question

Question

Answer 1

Answer #1

Correct Option : Second : Conservatism

As per accepted accounting principals and GAAP, the business should follow
the conservatism approach in preparing and presenting the financial statement and
reporting of the same. The conservatism approach denotes that the expected losses
shall be recognized immediately however expected gain shall not be recognized
until and unless its recognition criteria are met.

Answer 2

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