Economics · Accounting Principles & Concepts
Creating a provision against potential fluctuations in the price of investments is an application of which accounting convention?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Convention of Consistency
- 2Convention of Materiality
- 3Convention of Full Disclosure
- 4Convention of Conservatism (Prudence)✓
Correct answer
Convention of Conservatism (Prudence)
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