The concept of conservatism takes into account

A. All expected income and losses

B. All expected income but no losses

C. All expected losses but no expected income

D. None

Details of Mcqs: 

The conservatism concept is a concept in accounting which refers to the idea that expenses and liabilities should be recognised as soon as possible in a situation where there is uncertainty about the possible outcome and in contrast record assets and revenues only when they are assured to be received. For example, a company that expects to win litigation is obliged to meet all the requirements of revenue recognition before it reports the gains. However, the company must record the economic loss if it expects to lose a lawsuit.

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