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The principle of caution means that the expected losses are taken into account before they happen and not taking into account the expected profits only when actually achieved, True or False?
False
True.
The answer its;
True contain.
Wrong
True, according to conservatism principle in accounting
Is principle from GAAP, the caution principle According to the principle, the company should take the least optimistic approach to the situation, Accountants just have to choose the most conservative outcome if two different outcomes are available.
Example
the expected losses are taken into account before they happen and not taking into account the expected profits only when actually achieved,
IN general, it is true contain
Confidence is good but control is better, so be careful in all areas
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