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Which of the following activities would be undertaken by the company as part of following the conservatism principle? Creation of provisions for anticipated losses and

Which of the following activities would be undertaken by the company as part of following the conservatism principle?

  • Creation of provisions for anticipated losses and ignore anticipated gains
  • Recording revenues and expenses as and when cash is exchanged
  • Provisioning for losses due to incompetence of management in the books of accounts
  • Creation of a provision for expected revenue

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