THE ACCOUNTING CONVENTION WHICH STATES THAT PROFIT MUST NOT BE RECOGNIZED UNTIL REALIZED WHILE ALL LOSSES SHOULD BE ADEQUATELY PROVIDED FOR IS TERMED
A. materiality B. objectivity C. consistency D. conservatism ✓ The accounting convention that states profit must not be recognized until realized while all losses should be adequately provided for is termed conservatism. Conservatism is a principle in accounting that suggests caution in…