Definitions - X Match the accounting terminology to the definitions. (Click the icon to view the definitions.) 1. Conservatism 2. Materiality concept 3. Disclosure principle 4. Consistency principle a. A business should report the least favorable figures in the financial statements when two or more possible options are presented. b. A business's financial statements must report enough information for outsiders to make knowledgeable decisions about the company C. A business should use the same accounting methods and procedures from period to period. d. A company must perform strictly proper accounting only for items that are significant to the business's financial situation

Conservatism: A business should report the least favorable figures in the financial statements when two or more possible options are presented.

Explanation:

1. Conservatism: A business should report the least favorable figures in the financial statements when two or more possible options are presented.

2. Materiality concept : A company must perform strictly proper accounting only for items that are significant to the business's financial situation

3. Disclosure principle : A business's financial statements must report enough information for outsiders to make knowledgeable decisions about the company

4. Consistency principle: A business should use the same accounting methods and procedures from period to period.

answer; dividing net income by 1- t ;