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Which of the following is the correct understanding of the principle of conservatism in accounting?...

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Accounting

Which of the following is the correct understanding of the principle of conservatism in accounting?
Financial statements should be prepared based on objective rather than subjective evidence.
Financial statements are prepared under the assumption that the organization will continue to operate into the future.
Organizations should consider risks and recognize lower asset values and profits if outcomes are uncertain.
All transactions recorded in financial statements should have a monetary figure attached to them.

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