bias

问题如下：

Q. Which of the following is most likely to be considered a potential benefit of accounting conservatism?

选项：

A.A reduction in litigation costs

B.Less biased financial reporting

C.An increase in current period reported performance

解释：

A is correct. Conservatism reduces the possibility of litigation and, by extension, litigation costs. Rarely, if ever, is a company sued because it understated good news or overstated bad news. Accounting conservatism is a type of bias in financial reporting that decreases a company’s reported performance. Conservatism directly conflicts with the characteristic of neutrality.