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The conservatism constraint: A) Requires that when more than one equally likely estimate of amounts is expected to be received or paid in the future,
The conservatism constraint:
A) | Requires that when more than one equally likely estimate of amounts is expected to be received or paid in the future, then the less optimistic amount should be used. |
B) | Requires that a company use the same accounting methods period after period. |
C) | Requires that revenues and expenses be reported in the period in which they are earned or incurred. |
D) | Requires that all items of a material nature be included in financial statements. |
E) | Requires that all inventory items be reported at full cost. |
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