What is conservatism? Why do accountants sometimes find it necessary to be conservative in financial reporting?

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Intermediate Accounting Reporting and Analysis

ISBN: 978-1285453828

2nd edition

Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach

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Question Posted: Oct 05, 2015 04:56 AM

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What is conservatism? Why do accountants sometimes find it necessary to be conservative in financial reporting?

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Conservatism is an approach that accountants use to avoid overstating net assets and net inco...View the full answer

Intermediate Accounting Reporting and Analysis

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