CONSERVATISM PRINCIPLE Definition

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CONSERVATISM PRINCIPLE provides that accounting for a business should be fair and reasonable. Accountants are required in their work to make evaluations and estimates, to deliver opinions, and to select procedures. They should do so in a way that neither overstates nor understates the affairs of the business or the results of operation.

Learn new Accounting Terms

APE is Account Period Ending (Normally followed by the date the accounting period ends). See also Accounting Period.

SECURED TRANSACTION is the right to repossess goods as security for payment of a debt.

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