What is the purpose of the conservatism principle in accounting?

This is a single choice question. Selections are automatically selected as you use arrow to move.

A)Where there is uncertainty it is better to be cautious when recognizing gains and asset values.

B)It ensures that a business cannot distribute reserves that it might require to pay creditors.

C)When asset values are uncertain they should be represented on the balance sheet at their original cost.

D)It allows a company to create artificial losses, allowing it to smooth profits from one year to the next.