Accounting conservatism refers to overstating assets and under states liability, which eventually creates a misstatement. True False 1 point Which of the following is a common practice of accounting conservatism? lanagement internationally understates liabilities to increase net income. lanagement chooses a low of the two reasonable alternative values for liabilities. /hen an inventory item's cost is higher than market value, management chooses to record the inventory item at cost. lanagement recognizes a loss contingency earlier than normal. 1 point Which one of the following is commonly recorded as a loss contingency? Deferred tax assets Unrealized holding losses Deferred tax liabilities Ongoing litigations