质量分析

问题如下：

Question Conservative, rather than aggressive, accounting is most likely associated with:

选项：

A.increased sustainability of earnings. B.higher current reported performance. C.recognition of losses once certain.

解释：

Solution

A is correct. Conservative accounting choices decrease a company’s reported performance and results in the current period and may increase its reported performance and financial position in later periods. Therefore, it typically avoids a sustainability issue.

B is incorrect because higher current reported performance is a result associated with aggressive accounting choices, not conservative ones.

C is incorrect because in general, conservatism means that losses are recognized when probable; waiting to recognize losses until they are certain would be an aggressive approach rather than a conservative one.