Home › CBSE Class 11 (Commerce) › Accountancy › Theory Base of Accounting › Conservatism, also called prudence, is based on …
Conservatism, also called prudence, is based on which policy?
ATaking every risk
BPlaying safe in income
CShowing maximum profit
DIgnoring all losses
Answer & Solution
Correct answer: B. Playing safe in income
Conservatism takes a cautious approach so that profits are not overstated.
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