No inference of profit and the provision making policy for all possible losses is due to: a) Conven - (b) Description: The Concept of Conservatism states that the accountant should not anticipate income and should provide for all possible losses. This clearly shows that no inference of profit should be made and all possible losses should be incorporated. - Fundamentals of Accounting Interview Questions and Answers

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Question: No inference of profit and the provision making policy for all possible losses is due to:
a) Convention of Consistency
b) Convention of Conservatism
c) Convention of Disclosure
d) Convention of Materiality

Answer: (b)
Description: The Concept of Conservatism states that the accountant should not anticipate income and should provide for all possible losses. This clearly shows that no inference of profit should be made and all possible losses should be incorporated.

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Question: No inference of profit and the provision making policy for all possible losses is due to:
a) Convention of Consistency
b) Convention of Conservatism
c) Convention of Disclosure
d) Convention of Materiality

Answer:

(b)
Description: The Concept of Conservatism states that the accountant should not anticipate income and should provide for all possible losses. This clearly shows that no inference of profit should be made and all possible losses should be incorporated. Source: CoolInterview.com

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