English

State whether the following statement is true or false with reasons: Conservatism means to follow safe side. - Book Keeping and Accountancy

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Question

State whether the following statement is true or false with reasons:

Conservatism means to follow the safe side.

Options

  • True

  • False

MCQ
True or False

Solution

This statement is True.
As per the conservatism concept always consider probable loss and avoid the probable profit. Therefore, we can say that conservatism means to follow the safe side.
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Accounting Concepts, Conventions and Principles
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Chapter 1: Introduction to Book - Keeping and Accountancy - EXERCISE [Page 17]

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Balbharati Book Keeping and Accountancy [English] 11 Standard Maharashtra State Board
Chapter 1 Introduction to Book - Keeping and Accountancy
EXERCISE | Q 4. 2) | Page 17
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