Business, Legal & Accounting Glossary
Sometimes used with a stronger meaning of understating assets and overstating liabilities.
In business, investment, and accounting, the principle or convention of Conservatism has at least two meanings.
In investment and finance, it is a strategy which aims at long-term capital appreciation with low risk. It can be characterized as moderate or cautious and is the opposite of aggressive behaviour.
In accounting, it states that when choosing between two solutions, the one that will be least likely to overstate assets and income should be selected.
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This glossary post was last updated: 18th April, 2020 | 0 Views.