1. Provision is made for Bad and doubtful debts: This means that in the accounting records, an allowance is created to account for potential losses from customers who may not be able to pay their debts. This provision is based on an estimate of the amount that is likely to be uncollectible.

2. Depreciation is charged on assets: Depreciation is the systematic allocation of the cost of an asset over its useful life. In conservatism, assets are not assumed to retain their original value indefinitely. Instead, they are recognized to decrease in value over time, and this decrease is accounted for by charging depreciation expenses.

3. Recording is made of outstanding expenses: Outstanding expenses refer to expenses that have been incurred but not yet paid. In conservatism, these expenses are recorded in the accounting records to reflect the obligation to pay them in the future. This ensures that the financial statements present a more accurate and conservative view of the company's financial position.

4. All of the above: This option indicates that all the mentioned practices (provision for bad and doubtful debts, charging depreciation on assets, and recording outstanding expenses) are part of the convention of conservatism. By following these practices, companies can present financial statements that are more conservative and reflect a more cautious approach to financial reporting.

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1. Provision is made for Bad and doubtful debts: This means that in the accounting records, an allowance is created to account for potential losses from customers who may not be able to pay their debts. This provision is based on an estimate of the amount that is likely to be uncollectible.

2. Depreciation is charged on assets: Depreciation is the systematic allocation of the cost of an asset over its useful life. In conservatism, assets are not assumed to retain their original value indefinitely. Instead, they are recognized to decrease in value over time, and this decrease is accounted for by charging depreciation expenses.

3. Recording is made of outstanding expenses: Outstanding expenses refer to expenses that have been incurred but not yet paid. In conservatism, these expenses are recorded in the accounting records to reflect the obligation to pay them in the future. This ensures that the financial statements present a more accurate and conservative view of the company's financial position.

4. All of the above: This option indicates that all the mentioned practices (provision for bad and doubtful debts, charging depreciation on assets, and recording outstanding expenses) are part of the convention of conservatism. By following these practices, companies can present financial statements that are more conservative and reflect a more cautious approach to financial reporting.

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1. Provision is made for Bad and doubtful debts: This means that in the accounting records, an allowance is created to account for potential losses from customers who may not be able to pay their debts. This provision is based on an estimate of the amount that is likely to be uncollectible.

2. Depreciation is charged on assets: Depreciation is the systematic allocation of the cost of an asset over its useful life. In conservatism, assets are not assumed to retain their original value indefinitely. Instead, they are recognized to decrease in value over time, and this decrease is accounted for by charging depreciation expenses.

3. Recording is made of outstanding expenses: Outstanding expenses refer to expenses that have been incurred but not yet paid. In conservatism, these expenses are recorded in the accounting records to reflect the obligation to pay them in the future. This ensures that the financial statements present a more accurate and conservative view of the company's financial position.

4. All of the above: This option indicates that all the mentioned practices (provision for bad and doubtful debts, charging depreciation on assets, and recording outstanding expenses) are part of the convention of conservatism. By following these practices, companies can present financial statements that are more conservative and reflect a more cautious approach to financial reporting.

According to Convention of Conservatism 1.Provision is made for Bad and doubtful debts 2.Depreciation is charged on assets 3. Recording is made of outstanding expenses 4.All of the above

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