The Conservatism Principle is an accounting concept that dictates recognizing expenses and liabilities as soon as possible, but only recognizing revenues and assets when they are assured. This principle aims to provide a cautious approach to financial reporting, ensuring that uncertainties and potential losses are adequately accounted for, thereby preventing overstatement of financial health. The conservatism principle is fundamental in maintaining reliability and prudence in financial statements.
CMA Prep Course
CMA Exam Academy is a proven, 16-week per part online coaching program to help you pass the CMA. The Academy’s comprehensive curriculum will help you pass the CMA exam and achieve your dreams of earning 6-figures per year, ascend to the executive ranks and earn the respect from your peers.
