Explain Convention of Conservation

Give a brief introduction of the term ‘Convention of Conservation’?

E

Expert

Verified

This accounting convention is usually expressed as to “expect all the prospect losses and expenses, with no considering the prospect incomes and profits if not they are really realized.” This concept stress that profits must never be anticipated or overstated. This convention usually executes to the valuation of current assets as they are valued at cost or market price either is lower.

   Related Questions in Accounting Basics

2015 ©TutorsGlobe All rights reserved. TutorsGlobe Rated 4.8/5 based on 34139 reviews.